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Wednesday, 11 November 2026
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Government Pledges Electricity Tariffs Will Stay Stable After DISCO Privatisation

Minister for Economic Affairs Ahad Cheema says privatising power distribution companies will not burden consumers, with investors required to follow competitive bidding and NEPRA approval rules.

around.pk·3m ago

The government has moved to reassure electricity consumers that the planned privatisation of power distribution companies (DISCOs) will not lead to higher tariffs, pledging that household interests will be protected throughout the process. The assurance was given by Minister for Economic Affairs and Establishment Division Ahad Cheema during a review meeting held on November 10 to assess development programmes for the distribution companies and the government's preparations for their transfer to private ownership.

Cheema stated that the core objective of privatisation is not to place additional financial pressure on consumers. He emphasised that any projects undertaken by incoming private investors within the distribution companies must follow competitive bidding procedures and secure approval from the National Electric Power Regulatory Authority (NEPRA) wherever such clearance is required.

The meeting also examined how ongoing development initiatives will continue once the distribution companies are handed over to private investors. According to the minister, if a DISCO is privatised while project negotiations or preparations are still underway, the relevant financing and development programmes will be transferred to the incoming investor under pre-agreed arrangements.

Cheema said the government will back the privatisation process while safeguarding consumer interests and ensuring that investors honour their contractual and financial commitments. The session was attended by Minister for Power Division Sardar Awais Ahmad Khan Leghari, the prime minister's adviser on privatisation, and senior officials from the relevant ministries.

The assurances come as Islamabad presses ahead with plans to bring private capital into the power distribution sector, a move aimed at improving efficiency and service delivery. Officials indicated that protecting consumers and maintaining continuity in development work remain central to the government's approach as the transaction moves forward.

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