Pakistan has once again placed the privatization of electricity distribution companies (DISCOs) at the heart of its power sector reform agenda. The government’s decision to privatize Islamabad Electric Supply Company (IESCO), Gujranwala Electric Power Company (GEPCO) and Faisalabad Electric Supply Company (FESCO) is based on the belief that private ownership can improve efficiency, reduce losses, attract investment and ease the growing financial burden created by struggling DISCOs. Given the sector’s persistent financial and operational challenges, the rationale for privatization is understandable. The proposed privatization of DISCOs is also part of Pakistan’s broader power sector reform programme, supported by the IMF,…
Author: Shafqat Abbas
Pakistan’s power sector is entering a paradox that policymakers have yet to fully confront: electricity demand from the grid is falling, yet the cost of supplying it is rising. While the rapid spread of rooftop solar has begun to hollow out the consumer base of the national grid, the fixed capacity payments and persistent inefficiencies keep total system costs elevated. At first glance, the shift toward solar appears to be a zero-sum outcome: households gain cheaper electricity with solar adoption, while the grid loses its most valuable customers. However, the framing remains incomplete and overlooks deeper structural issues. The conventional…