THE predicament that thousands of power-sector employees are going through is miserable as they have no legal platform to protect their fundamental rights with regard to their service conditions. The Water and Power Development Authority (Wapda) was established in 1958 as a statutory organisation.

Accordingly, the rules governing its employees were statutory, and Wapda employees were considered civil servants, enjoying access to legal forums, such as high courts and the Federal Service Tribunal, for the redressal of service-related grievances.

Moreover, in 2007, the power wing of Wapda was restructured, and its functions were divided among 10 distribution companies (Discos), four generation companies (Gencos), and one transmission company, called the National Transmission and Despatch Company (NTDC). These successor entities were incorporated under the Companies Ordinance, 1984, and now function under the Ministry of Energy (Power Division).

Although these companies have independent boards and operate under corporate frameworks, they remain wholly owned by the federal government, which appoints their chief executive officers (CEOs) and directors, oversees their operations, and absorbs their financial losses. Furthermore, they continue to implement federal policies and follow the national pay scale scheme of the government.

Despite this clear functional as well as financial control by the federal govern-ment, many employees — particularly those initially appointed under Wapda’s statutory rules — now find themselves in an unjust legal limbo.

Unfortunately, courts have on several occasions declined to hear their service matters on the ground that these companies are not statutory bodies. This is, indeed, frustrating and deeply concerning, especially because these employees were originally hired under statutory rules. And, importantly, they have continued their service without any interruption.

The Supreme Court has held in multiple judgments that the service terms and conditions of employees initially appointed under statutory or government frameworks must remain protected even if the entity is later corporatised or restructured.

Yet, in practice, this legal principle is not being consistently applied. This ambiguity must be addressed urgently through clear legislation. The employees — more than 100,000 of them, mind you — deserve clarity, protection and justice.

Tariq Majeed
Hyderabad

Published in Dawn, June 25th, 2025