ISLAMABAD (Daily Point) — The Federal Cabinet is poised to transfer control of five electricity distribution companies to the Pakistan Army in a bid to enhance their operational efficiency.

According to reports, the cabinet is expected to approve the establishment of Performance Management Units (PMUs) led by a serving brigadier of the army. The PMUs will comprise officers from the Pakistan Administrative Service, Federal Investigation Agency, and intelligence agencies.

The designated PMUs will be established in QESCO (Quetta), PESCO (Peshawar), SEPCO (Sukkur), MEPCO (Multan), and HESCO (Hyderabad), which have reported the highest losses nationwide. The initial PMU is slated to be established in Hyderabad as a pilot project.

Although the proposal, finalized in the Special Investment Facilitation Council (SIFC), has encountered opposition within the government, it is likely to proceed. The finance division has raised objections, asserting that the endorsement for army officers to assume control was not sanctioned by the SIFC but was later added.

The SIFC originally recommended the establishment of an Anti-Theft Taskforce in each financially struggling distribution company. However, the power division’s proposal introduced PMUs managed by army officers.

The finance division opposes the PMUs under army officers, expressing concerns that such measures may exacerbate governance issues within the distribution companies. Furthermore, objections have been raised regarding the lack of clarity on the Terms of Reference (ToRs) and Key Performance Indicators (KPIs) for the PMUs led by army officers.

The distribution companies are projected to incur losses of Rs589 billion in the current financial year, with circular debt already reaching Rs1.7 trillion. The government continues to grapple with mismanagement issues plaguing these companies.