Prime Minister’s Adviser Muhammad Ali is likely to take charge of the Privatization portfolio, sources reveal. His key tasks will include privatizing power distribution companies (Discos) and state-owned gas companies, Sui Northern and Sui Southern, by unbundling them into transmission and distribution companies.¹
Ali’s experience as energy minister during the interim regime makes him an ideal candidate for the role. The government aims to address the significant losses incurred by state-owned companies, including Rs851 billion annually, and Rs600 billion by Discos, which also contribute to a monthly circular debt of Rs45 billion.
As a member of the task force on power, Muhammad Ali has already made significant contributions, including terminating contracts with six independent power producers (IPPs) and renegotiating power purchase agreements. The task force has saved Rs1,500 billion in future payments and reduced the power tariff by Rs1.87 per unit.
Additionally, Ali will oversee the sale process of Pakistan International Airlines (PIA), which previously failed to attract investors.
