ISLAMABAD: The Senate Functional Committee on Devolution’s Sub-Committee has recommended the issue of privatisation of Power Distribution Companies (Discos) be placed before the Council of Common Interests (CCI) afresh for consideration and an appropriate decision. The sub-committee met under the convenorship of Senator Zamir Hussain Ghumro on Tuesday.
The convener expressed displeasure over the absence of secretary Cabinet Division from the proceedings and stressed relevant ministries and departments must ensure their presence at the committee meetings. He warned if such absences continued, the matter would be reported to the prime minister.
The sub-committee discussed the proposed privatisation of power distribution companies. Senator Ghumro questioned the rationale for privatisation, particularly in view of high recovery rates reported in Islamabad, Faisalabad and Lahore, which stand at 100pc, 98pc and 99pc, respectively. The committee was informed the federal government was privatising power distribution companies falling within its jurisdiction and that the proposal for their privatisation had previously been considered by the CCI in 2011.
Senator Zamir Hussain Ghumro observed electricity distribution should be dealt with in accordance with constitutional scheme of devolution. He stressed responsibility for providing electricity services should not unnecessarily be transferred to private entities. He said constitutional provisions relating to electricity and provincial autonomy must be implemented in letter and spirit. He said under Article 157 of Constitution, provincial governments are responsible for distribution of electricity within their respective provinces. “They can fix tariffs, impose consumption taxes and lay transmission lines,” he said, adding they can also establish powerhouses and grid stations.
The committee recommended the issue of privatisation of power distribution companies be placed before the CCI afresh for consideration and an appropriate decision. Senator Jan Muhammad Buledi said the CCI’s 2011 decision was no longer relevant because the Council had been reconstituted several times since then.
The sub-committee also examined continued existence of federal ministries and departments dealing with subjects devolved to the provinces. Senator Ghumro observed despite decisions taken following 18th Constitutional Amendment, several ministries and functions had subsequently been recreated at the federal level. He stressed the federal government should restrict its functions to matters constitutionally assigned to it and that devolved subjects must be transferred to the provinces in accordance with constitutional scheme.
The committee unanimously rejected the contention submitted by the Cabinet Division that these ministries had been created for coordination and to meet international commitments. It said in its August 17 meeting, it had clearly directed all 24 ministries and institutions dealing with provincial matters, as well as CCI-related subjects, could be abolished. However, the Cabinet Division had again presented the same reasons, which had already been rejected for being inconsistent with the Constitution.
Senator Ghumro said the federal government was “bleeding the country” by spending Rs19 trillion, while the country’s total tax and non-tax revenue was around Rs20 trillion. He directed the Cabinet Division to bring the matter to prime minister’s knowledge and submit a fresh compliance report. Otherwise, he warned, the prime minister would be summoned to the meeting. He said retaining 24 ministries and institutions illegally at the federal level was placing unnecessary financial burden on the country.
The committee also questioned the role of Establishment Division in matters relating to promotion and service affairs of police officers serving in provinces, observing such matters fell within the provincial domain.
The sub-committee also discussed the status of Capital Administration and Development Division (CAAD). The committee recommended a fresh letter be addressed to prime minister regarding the transfer of CCI matters to its permanent secretariat so that divisions and departments could be created that would be accountable to parliament. It also proposed subjects devolved under constitutional scheme be transferred to provinces.
The committee was also briefed by managing director of Thar Coal regarding operational status of Thar coal-based power plants. It was informed six Thar Coal power plants were currently operational. Four of them were operating entirely on Thar Coal, while remaining two were using Thar Coal to the extent of 33pc and 20pc, respectively.
