The federal government has finalised plan to privatize profit-making power distribution companies (Discos).

According to the sources, the Shehbaz-led coalition government has finalised the plan to privatize five profit-making power companies. The power companies include Lahore Electric Supply Company (LESCO), Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), Multan Electric Power Company (MEPCO) and Faisalabad Electric Supply Company (FESCO).

In first phase, government has decided to constitute new board for power companies, they say, adding that the privatization ministry has sent summary to cabinet regarding the formation of high-powered 12-member board for Discos privatization.

12-members of the board will be directors of all five discos and they will look over all the privatization process of profit-making discos, sources said, adding that electricity prices are likely to go up with the privatisation of power companies.

Earlier, the caretaker government gave approval to privatise loss-making power entities.

It is worth mentioning here that the federal government last month ‘okayed’ deputation of Federal Investigation Officers (FIA) officers to electricity distribution companies (DISCOs) to end power theft.

The move was taken to end power theft and enhance recoveries on the demand of the International Monetary Fund (IMF), it emerged.

The move came after power theft in Power Distribution Companies (DISCOs) reportedly resulted in a whopping Rs 438 billion loss to the national kitty.

According to sources, the losses soared to over Rs 438 billion out of the total annual billing of Rs 723 billion.

The power division had declared the power supplying companies in Hyderabad, Sukkur, Peshawar, Quetta, and Tribal areas as the worst-performing DISCOs.