The Cabinet Committee on Privatisation (CCoP) is scheduled to meet here on Thursday to take up Karachi Electric Supply Corporation''s (KESC) default on Water and Power Development Authority (Wapda) and other departments'' payments. The CCoP will also review the situation arising out of continuous shutdowns in Karachi.
KESC has failed to meet the consumers'' demand in post-privatisation scenario. Its management extended several assurances to the top level leadership during various meetings during last two years for better performance, but none of them worked to government expectations. The authorities have developed strong feelings that KESC management was reluctant to invest money to replace existing obsolete system with some new efficient one to improve its performance. Instead, its distribution system deteriorated during last couple of years, increasing demand-supply gap.
The new development of default on its part to make payments to Wapda and PSO against power and furnace oil purchase have caused serious concern to the authorities in Islamabad. Wapda gave KESC a helping hand by increasing supply of power on government direction, but it did not bring good to the consumers who are facing worst kind of load shedding for longest ever periods.
KESC''s poor performance has raised serious questions on its privatisation. In the post-privatisation era, it has miserably failed to cater to the demand of the consumers.
Sources said KESC''s poor performance has been noted at the highest level and now its default on payments to several departments were making things worse. They said KESC may get some hard direction from CCoP for improvement of performance.
The CCoP will also review Pakistan Telecommunication Limited (PTCL''s) case. Its management is also facing difficulties in managing the affairs to come up with the consumers'' expectations. PTCL''s land controversy will also be on the agenda of CCoP.
Privatisation Minister Wasi Zafar will, for the first time, represent Privatisation Commission before the CCoP. He is supposed to give presentation to the committee on some other issues relating to the sell-off programme. These include sell-off of PSO, NIT and some power sector entities. He will also inform the committee on the progress made so far for Pakistan Steel Mills Corporation (PSMC) initial public offering (IPO).
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