Privatisation Division Defends DISCO Sale Process Without Fresh CCI Approval
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✧ GENERATE BRIEFING
The Privatisation Division (PD) has formally informed a subcommittee of the Senate’s Functional Committee on Devolution that fresh approval from the Council of Common Interests (CCI) is not required to proceed with the privatisation of power distribution companies (DISCOs). Citing legacy decisions, constitutional provisions, and legal opinions, the ministry maintains that existing policy mandates provide full legal authorization. Key operational, constitutional, and legal arguments presented by the ministry include: Historical CCI Mandate: The Privatisation Division highlighted that the CCI had already approved the privatisation of 3 power generation companies (GENCOs) and 9 distribution companies (DISCOs) in 2011, an approval the division considers fully valid and active. National Electricity Policy 2021: Reaffirmed that Paragraph 5.9.4 of the CCI-approved National Electricity Policy (June 21, 2021) explicitly empowers the federal government to pursue private-sector participation and privatisation options to improve operational efficiency.
The Privatisation Division (PD) has maintained that the federal government does not need fresh approval from the Council of Common Interests (CCI) to privatise power distribution companies (DISCOs), citing earlier decisions and the National Electricity Policy.
In a response submitted to a subcommittee of the Senate’s Functional Committee on Devolution, the division said the CCI had approved the privatisation of three power generation companies and nine distribution companies in 2011. It argued that the decision remains valid.
Policy Framework and Legal Justification
The division also cited the National Electricity Policy approved by the CCI on June 21, 2021. Paragraph 5.9.4 of the policy allows the government to explore privatisation options, where applicable, to improve the efficiency of state-owned entities.
The Privatisation Division further referred to a letter issued by the Law Division on September 25, 2026, which reaffirmed that the 2011 CCI decision meant a new approval was not required for the DISCO privatisation process.
Parliamentary Pushback and Provincial Jurisdiction
The position comes amid objections from a Senate subcommittee, which has questioned the federal government’s authority to privatise the utilities without referring the matter back to the CCI. The panel has argued that DISCOs perform functions connected to provincial matters and that the process must comply with constitutional requirements following the 18th Amendment.
The Senate panel has previously called for the privatisation process to be halted until the issue is referred to the CCI. It has also warned that failure to comply with its directions could lead to parliamentary action.
First-Phase Privatisation Roadmap
The government, meanwhile, is proceeding with plans to bring private-sector participation into power distribution companies. The Privatisation Commission has been advancing preparations for the first batch, including Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO) and Islamabad Electric Supply Company (IESCO).
The disagreement highlights a wider constitutional and governance dispute over the division of responsibilities between the federal government and provinces. The final direction of the DISCO privatisation process may depend on how the competing interpretations of earlier CCI decisions and constitutional authority are resolved.
