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Event Title: Senator Saifullah Abro, Chairman Senate Standing Committee on Power presiding over a Meeting of the Committee at Parliament Lodges Islamabad

Event Date: 2022-12-20

Chairman Committee Senator Saifullah Abro expressed displeasure over the continuous absence of Federal Minister for Energy (Power Division) and CEO, K-Electric. The Committee decided to meet and discuss the matter with the Hon. Chairman Senate. The Senate body was briefed by K-Electric about the inception, privatisation of K-Electric, and profits made by so far. Imran Qureshi, Chief Regulatory Affairs of K-Electric, apprised the committee that the      K-Electric was first established in 1913 and nationalised in 1952. He informed that company was privatised in 2005 and has 3.4 Million customers and earned it's first profit in 2012. He further added that first FDI made after the privatisation was around USD 700 Million and investment of Rs.474 Billion have been made upto FY 2022 in power infrastructure. K-Electric is currently running six power plants naming Korangi Combined Cycle,Korangi Gas Turbine, SITE Gas Turbine, BQPS II, BQPS III, Port Qasim and total capacity of these power plants is around 1870 MW. Senator Saifullah Abro commented that despite producing 1870 MW with additional of 1100 MW from Government of Pakistan, why do K-Electric failed to meet the energy requirement of Karachi. He inquired the K-Electric officials about the cost incurred on these power projects and details relating to Power Purchase Agreement of K-Electric with Government of Pakistan. Chairman Committee Senator Saifullah expressed dissatisfaction over the briefing and directed the officials to provide a comprehensive briefing in the next meeting.

Furthermore, the Senate Committee was also briefed by privatization commission about the privatisation of K-Electric. Officials of Private Commission apprised the committee that, in  1992 Government of Pakistan decided approved a strategic plan for the commercialisation and privatisation of Power sector. K-Electric was making loses for the last 13 years and the loss for the year 2001,2002 and 2003 were Rs.16.4 Billion, Rs. 17.7 Billion and Rs.14.4 Billion, they added. They further informed that privatisation process for K-Electric was started in 2001 but the process didn't completed because none suitable buyers came forward and the process was again initiated in 2003 and the contract was awarded to consortium led by Hassan Associates with a bid of Rs. 1.65 per share.  Senator Saifullah Abro directed the private commission to provide all the bidding details relating to financial advisor in the next meeting.

Moreover, the matter relating to electricity provided to Balochistan Agriculture sector for tube wells was also taken up. The Chair formed a Sub-Committee and appointed Senator Fida Muhammad as it's Convener. The Sub-Committee will probe the matter and submit its report within two months’ time.

The committee also discussed the matter of Public Importance raised by Senator Mushtaq Ahmad Khan with respect to recruitment process followed for the different vacant jobs advertised by PESCO. Senator Mushtaq Ahmad Khan questioned as why the details relating to agreement between PESCO and University of Engineering and Technology, Peshawar has been submitted before the committee and why do the recruitment process has been held uo so far. Gul Nabi Sayed, CEO PESCO, informed the committee that appointment letter against 128 posts of Junior Engineers has been issued to the selected candidates. Senator Mushtaq Ahmad Khan inquired the PESCO officials to provide details of candidate, who have scored 80 pc marks in written tests but failed to secure a place in final selection. Senator Saifullah Abro directed the PESCO to provide lists of written test result and final recommendation of candidates in the next meeting. The Committee also decided and recommended Power Division to put the process of issued orders & joining on hold unless & until the requisite documents are submitted by Power Division.

Regarding a detailed briefing on provincial government development funds (2020-23), the Committee unanimously decided and recommended the CEO, PESCO to meet the rehabilitation requirement from ELR funds. The ELR funds may be utilized accordingly.

However, as to implementation status of recommendations made by the committee in the previous meeting which includes mainly the renewal of agreement between Government of Pakistan and K-Electric and recovery of circular debt. Senator Saifullah Abro reiterated that why agreement between K-Electric and government of Pakistan has not been renewed since its expiry in 2015 and when will the agreement be renewed. Senator Saifullah Abro directed the ministry to provide correspondence regarding the renewal of agreement between K-Electric and Government of Pakistan in the next meeting.

The meeting was attended by Senator Fida Muhammad, Senator Saifullah Sarwar Khan Nyazee, Senator Zeeshan Khanzada, Senator Prince Ahmed Umer Ahmedzai, Senator Haji Hidayatullah Khan, Senator Bahramand Khan Tangi, Senator Muhammad Asad Ali Khan Junejo, Senator Mushtaq Ahmad Khan, Senator Sana Jamali, Arshad Majeed Additional Secretary for Power Division, Chairman NEPRA Tauseef H.Farooqi, Imran Qureshi Chief Regulatory Affairs for K-Electric and other concerned officers were also in attendance.