The government is set to reduce power tariffs by Rs2 per unit, media reports say.
The final decision to reduce the electricity price will be made next month.
Reports say the IMF has agreed to it, allowing the government to slash the tariff.
The government is holding talks with the delegation of the International Montry Fund for one billion loans.
The IMF has expressed dissatisfaction with the performance of the power distribution companies (DISCOs).
Global lender has linked the reduction in power tariff to the performance of the DISCOs. It demanded the government go for the privatization of the distribution companies.
Hence, as per reports, the government has submitted the plan for the privatization of the DISCOs.
DISCOs Privatization
As per the plan, the IESCO , Fesco and GEPCO will be privatized in the first phase. Islamabad Electricity Company and Faisalabad Electricity Company and Gujranwala Electric Power Company will go for privatization very soon, reports say.
Following the privatization of the three Discos, the government will go for sale of other three.
They are Lesco, Mepco and Hesco.
Lahore Electric Supply Company, Multan Electric Power Company and Hyderabad Electric Supply Company will also hand over to the private sector, reports say.
Trade unions and some political parties are expected to resist the privatization process. It is believed that IESCO, Lesco, Fesco, Gepco are not loss-making companies. Power sector has 10 DOSCOs, five for Punjab, two for interior Sindh, one for Balochistan and two dedicated to KP.
K-Electric is responsible for power distribution in Karachi and private sector operates it
