An activist of PML-N holds a light bulb in her mouth during a rally in Lahore against widespread electricity shortages in the country. Pepco's dissolution is expected to lower the circular debt problem, on of the biggest instigators of the country's power crisis. - AFP photo

ISLAMABAD: Pakistan Electric Power Company’s Board of Directors, headed by Secretary Water and Power, has approved its dissolution, and necessary notification will be issued within this week, the Business Recorder said in a report published Thursday.

Imtiaz Kazi, Secretary Water and Power, said that the government had completed all formalities on its part and was just awaiting a court ruling for the same.

The decision to dissolve Pepco, part of a broad range of power sector reforms initiated by the government, was made in consultation with the World Bank and the Asian Development Bank.

In line with the same, the government is also planning the transfer of all distribution companies to provincial governments, the manner of which will be confirmed after consultation with stakeholders.

Pepco’s role will now be taken over by the Central Power Purchase Agency, where the board’s members will largely consist of individuals from the private sector.

The structure, as reported by the Business Recorder, will consist of eight members, divided equally amongst government representatives, private sector stakeholders, discos’ officials and consumer groups.

Pepco workers have begun planning their protest demonstrations in response to which the government is in active negotiations with the unions.