Senate Panel Seeks CCI Review Before Discos Privatisation

A Senate sub-committee has called for the privatisation of Pakistan’s power distribution companies (Discos) to be put on hold, directing the Privatisation Commission to refer the matter to the Council of Common Interests (CCI) or potentially face parliamentary action.

The Senate Sub-Committee on Devolution, chaired by Senator Zamir Hussain Ghumro, expressed reservations over the Privatisation Commission’s decision to continue the privatisation process without obtaining fresh approval from the CCI.

The committee maintained that Discos perform functions linked to provincial jurisdiction and said the matter should either be regularised through the provincial assemblies or the companies’ functions should be transferred to the provinces.

Senator Ghumro warned that failure to comply with the committee’s earlier directions could lead to a privilege motion against the Privatisation Commission.

The issue was discussed as the panel reviewed implementation of the 18th Constitutional Amendment and the status of federal institutions dealing with provincial and CCI-related matters.

The committee also examined compliance reports from the CCI Secretariat, Cabinet Division and Establishment Division, along with federal spending on ministries, departments and organisations operating in areas considered by the panel to fall under provincial or CCI oversight.

Ghumro said the committee had called for the abolition of 24 federal ministries and organisations dealing with provincial and CCI subjects and proposed reducing federal expenditure from Rs19 trillion to Rs13 trillion.

He said Pakistan’s combined tax and non-tax revenue was around Rs20 trillion, compared with federal expenditure of nearly Rs19 trillion, and called for a constitutional audit of the federal government’s size and spending.

The panel also requested audited expenditure details covering the past 16 years for federal ministries and organisations dealing with provincial and CCI-related subjects. The Cabinet Division informed the committee that issues raised during its August 17 and September 8 meetings had been forwarded to Prime Minister Shehbaz Sharif for action.

The committee separately reviewed the status of the Police Service of Pakistan (PSP). Officials told the panel that policing was primarily a provincial subject, while the PSP had been retained under Article 240 of the Constitution. The Establishment Division was directed to submit its comments within two weeks.

The panel also discussed the devolution of broadcasting and print media functions. Information Minister Attaullah Tarar requested one month to consult provincial governments and prepare proposals, with the committee directing that a comprehensive proposal be submitted within that period.

The committee received a briefing from the Power Division and Thar Coal Energy Board regarding electricity generated from Thar coal. Officials said the electricity was being supplied to the national grid, while subsidy arrangements for consumers in Islamkot were under consideration.

The panel maintained that matters covered under Part II of the Federal Legislative List should be referred to the CCI rather than being decided by the federal cabinet. The CCI is constitutionally assigned a role in formulating policy for matters listed in Part II of the Federal Legislative List.