ICAP opposes DISCOs’ privatisation

KARACHI: The Institute of Chartered Accountants of Pakistan (ICAP) has opposed privatisation of distribution companies (DISCOs), and termed it harmful if done with the existing infrastructure.

The ICAP drafted its recommendations for the government to improve the situation in the energy sector during a roundtable on “Power Sector - A Way Forward hosted at ICAP” on Monday.

Those recommendations, drafted by the Economic Advisory Committee and Government Relations Committee of the ICAP, were shared by member Economic Advisory Committee and power sector specialist Salman Amin.

Amin said production of electricity has been increased by 95 percent during the last 18 years, while distribution capacity was improved by just 26 percent in the same period. Current system of tariff was very unjust and exploitative.

DISCOs wished more relaxation in losses rather than improving ill performance, he said, suggesting not agreeing with the IMF on privatisation of DISCOs. Instead, he recommended separating the transmission and distribution business of DISCOs in the next four to five years. He also pointed out that power theft could not be rooted out without provincial and district support. About the CASA1000, he categorically said it was nor needed nor beneficial for Pakistan, and rather was more to the benefit of Afghanistan and Kirghizstan.