The federal government has decided to outsource the security of energy installations and oil logistics, and also to hand over the operations of power generation companies. The decision was made in the light of the attack by militants on transmission lines in Baluchistan which resulted in blackouts around the country and after reviewing the performance of power generating companies.
The previous government had also decided to outsource installations security and administration of power generation companies. However, they were unsuccessful in doing so as they faced strong resistance by Wapda employees. According to the government, $200 million worth of furnace oil is stolen every year, and five thermal energy plants – 650 megawatts generating Jamshoro plant, 800 megawatts Guddu plant, 1000 megawatts Muzaffargarh plant, 30 megawatts Lakhra plant, and the Nandipur plant which is being constructed are facing financial difficulties.
The power generation companies have been operating on a loss due to power theft and transmission line losses. They have been surviving on government subsidies which is taking a toil on the circular debt. The government plans to privatize the power generation companies in order to control the circular debt. According to the government, billions of rupees are lost in circular debt because of the performance of the companies. Once they get privatized, it’ll bring relief to the circular debt.