ISLAMABAD: A Senate panel on privatisation on Tuesday reviewed sweeping reforms in the power sector, updates on Pakistan International Airlines Corp restructuring, and a disputed Karachi property case involving Pakistan Railways, directing officials and stakeholders to appear with detailed briefings in the next meeting.
The Senate Standing Committee on Privatisation, chaired by Senator Dr Afnan Ullah Khan, examined the planned privatisation of power distribution companies (DISCOs) and generation companies (GENCOs) under the single-buyer electricity market model, amid concerns over financial losses and structural weaknesses in key utilities.
Officials told the committee that Quetta Electric Supply Company (QESCO) remains a major challenge due to persistent losses and operational inefficiencies, prompting lawmakers to question whether struggling entities should be privatised or first restructured for viability. The committee was also briefed on proposed privatisation of Guddu and Nandipur power plants, with officials indicating that a summary has been moved by the Petroleum Division and suggesting the process may not proceed in its current form.
Turning to PIACL restructuring, officials said three major issues were under review, including a Rs5 billion payment expected by June 15, and confirmed plans to add more than 50 aircraft to the fleet as part of long-term revival efforts. They also outlined ongoing separation of non-core properties from the privatisation process, though lawmakers sought clarity on asset valuations and demanded a detailed report.
Senators also raised concerns over healthcare services for PIACL employees and retirees, with officials stating that more than 14,500 beneficiaries have been registered with State Life Insurance Corp., and that over 2,200 outpatient cases had been handled under a new network of more than 800 hospitals.
The committee further reviewed a contentious Karachi property case involving the National Commodities Exchange Ltd. (NCEL) building (formerly the Hyatt Regency Project) on Pakistan Railways land in Civil Lines. Officials informed the committee that the successful bidder had sought a change in the ownership/title arrangement. However, Pakistan Railways objected to the proposal, maintaining that the land would remain in the name of successful bidder and that no change could be made in this regard. Subsequently, the matter became subject to litigation and a stay order was issued.
The committee directed Pakistan Railways, NCEL and the successful bidder to appear in the next session for a comprehensive briefing, as lawmakers pressed for clarity on legal and ownership issues surrounding the project.
