PESHAWAR: The Peshawar High Court on Monday issued a stay order stopping the federal government from bifurcating the Peshawar Electric Supply Company (Pesco).

A bench consisting of Justice Ijaz Anwar and Justice Syed Arshad Ali ordered the maintaining of the status quo on the matter after holding a preliminary hearing into the petition filed by the Hydro Electric Labour Union.

The petitioner challenged a recent order of the prime minister about the bifurcation of the Pesco’s division and creation of a separate electric power distribution company for Hazara.

The bench sought comments from the respondents, including the ministry of water and power, on the petition and fixed the next hearing for March 6.

The petitioner’s counsel, Shumail Ahmad Butt, said that the prime minister had issued the impugned order in exercise of his powers under Rule 4(5) of the Rules of Business, 1973. He argued that it was an illegal and politically-motivated decision.

He informed the court that such decision required approval of the Council of Common Interest being covered by Article 154 of the Constitution and argued that the prime minister had no authority under the Rules of Business to make such an order.

PHC seeks govt reply to petition against move

The lawyer referred to the Supreme Court judgement in the Mustafa Impex case and argued that there was no cabinet decision on the matter.

He said that under that judgement, the government meant the cabinet and not the prime minister alone.

Mr Butt contended that since the Pesco was a company, such decision should come from its board of directors and should be given effect under the Companies Act.

He informed the court that though power distribution was a regulated activity, the National Electric Power Regulatory Authority wasn’t involved in the matter.

Deputy attorney general Sanaullah resisted the matter by calling the petition “premature.”

He said that as the Pesco had so far not been bifurcated, the cause of action had not arisen for the petitioner.

After preliminary arguments, the bench decided to order the maintaining of the status quo on the matter.

Published in Dawn, February 28th, 2023