ISLAMABAD: The National Assem­bly’s Standing Committee on Economic Affairs Division (EAD) expressed concern on Wednesday over the privatisation of profit-making power distribution companies (Discos) and the financial loss incurred from generating surplus electricity.

The committee, chaired by MNA Muhammad Atif, also reprimanded the National Highway Authority (NHA) for the absence of its chairman and Com­munications Minister Abdul Aleem Khan from the meeting.

The committee examined the proposed privatisation of three power distribution companies of Islamabad, Gujran­wala and Faisalabad — Iesco, Gepco and Fesco — raising concerns over the methodology that exclusively targets Discos with minimal transmission and distribution losses for privatisation.

The power division presented an overview of Pakistan’s current power generation capacity, reporting a total installed capacity of 39,952MW. The energy mix revealed a concerning imbalance, with fossil fuel-based generation accounting for 54 per cent and clean energy sources contributing just 46pc.

Country relies on fossil fuels for 54pc of power generation needs, lawmakers told

The committee was informed that Pakistan’s power sector is facing a significant surplus of approximately 7,000MW to 8,000MW in electricity generation capacity, placing an extra financial burden on the national exchequer.

Carec project

The National Assembly committee also reprimanded NHA for the absence of its chairman and the communications minister in relation to alleged irregularities in the award of the Rs170 billion Central Asia Regional Economic Cooperation (Carec) Tranche-III project.

The committee’s chairman, Muham­mad Atif, said the panel would not discuss the matter and postponed the issue until the next meeting, demanding the presence of both the officials.

On Tuesday, the NHA failed to provide relevant documents to the Senate Sta­nding Committee on EAD, raising concerns about possible wrongdoing in the award of the Carec Tranche-III project.

Development budgets for provinces

On Wednesday, the NA committee also raised concerns over the budgetary allocations for development projects in Balochistan and Khyber Pakhtunkhwa. It was informed that Balochistan will receive Rs209.6bn, Punjab Rs76.6bn, Sindh Rs145.9bn, and KP Rs30.843bn in the federal budget.

The committee was also informed that the Economic Affairs Division has sought in-principle approval from the federal cabinet for a new legislative framework, the ‘Foreign Contributions (NGOs and NPOs) Regulation Act, 2025’, to address legal gaps in the regulation of foreign donations.

Published in Dawn, July 24th, 2025