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Home News

Finance Ministry rejected new power sector management plan

TechX Sport by TechX Sport
December 7, 2023
in News
Reading Time: 3 mins read
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finance-ministry-rejected-new-power-sector-management-plan

An official plan to improve the management of the rotten power distribution companies by appointing senior armed forces officers as heads of new Performance Management Units (PMUs) has not received support from the finance ministry.

Table of Contents

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  • Finance Ministry Rejected The Management Proposal of Loss Making Power Sectors
  • Ministry of Energy Proposed the Inclusion of Army Officers
  • Establishment of New PMUs
  • DISCOs Management

Finance Ministry Rejected The Management Proposal of Loss Making Power Sectors

However, the finance ministry supported the Special Investment Facilitation Council’s (SIFC) initial decision to involve the military in an ongoing campaign to combat electricity theft.

A few days ago, a senior official from the Ministry of Energy stated that the army rejected the idea put forth by the ministry to involve the armed forces in the management of the power distribution companies.

finance-ministry-rejected-new-power-sector-management-plan

The SIFC had not proposed the creation of new PMUs or the appointment of senior army officers to lead them.

Instead, it was the Power Division’s concept that the Ministry of Finance rejected.

Ministry of Energy Proposed the Inclusion of Army Officers

According to Ministry of Energy sources, the Ministry of Finance has not endorsed the summary submitted to the federal cabinet that calls for giving the army, police, and intelligence services control over the management of the power distribution companies.

The ministry of energy intended to establish new PMUs in distribution companies run by brigadiers.

According to sources in the energy ministry, the proposal was deemed by the finance ministry to be in breach of a ruling by the SIFC that had authorized the army’s involvement only in the context of an anti-theft campaign.

Qamar Abbasi, the finance ministry’s spokesperson, declined to respond to inquiries about the ministry’s stance on military involvement despite several attempts.

Establishment of New PMUs

The Power Division suggested that new PMUs will establish in all power distribution companies, with a grade 20 officer of the armed forces to lead these units, in a summary prepared for the federal cabinet.

It suggested launching a trial project at the Hyderabad Electricity Supply Company (HESCO) under the leadership of a brigadier who would answer directly to Rashid Langrial, the federal secretary of power.

Officers from intelligence agencies, the FIA, and the Pakistan Administrative Service (PAS) will also include in the unit, according to the proposal.

DISCOs Management

In order to strengthen the management of each DISCO, the summary also requested the senior army officer’s deputation, along with that of his team and allied staff.

Additionally, it asked the Ministry of Defense to assign one officer from each DISCO who works with sensitive agencies.

A cabinet approval also requested for the appointment of a BS-18 serving police officer in each power distribution company to oversee police authorities’ cooperation in the anti-theft campaign.

Nevertheless, the sources claimed that since SIFC had not made any such proposal, the finance ministry was strongly against the military managing the power distribution companies.

The finance ministry believed that no decision made regarding the new PMUs.

However, SIFC decided that an anti-theft task force will attach to the power distribution companies.

To read our blog on “Govt. halts free electricity units for WAPDA employees,” click here.

Tags: discosfinance ministryfinance ministry rejected proposal of loss making power sectors to be administered by an army personnelgencosloss making power sectorspakistan armypower sector
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