The government has defended its plan to privatize nine power distribution companies (DISCOs) without seeking fresh approval from the Council of Common Interests (CCI), but a Senate subcommittee has raised constitutional and legal concerns over the process.

The Privatisation Division told the subcommittee that the CCI had approved the privatization of nine DISCOs and three generation companies (GENCOs) in 2011. It also cited the National Electricity Policy, approved by the CCI on June 21, 2021, which allows the government to explore privatization options to improve the efficiency of state-owned entities.

The division said the Law Division confirmed in a letter dated September 25, 2026, that the 2011 CCI decision remained valid and that fresh approval was not required to privatize the DISCOs.

However, the Senate subcommittee, reviewing the Privatisation Commission’s report on the proposed sale, questioned whether the government could proceed without addressing provincial concerns.

Committee Chairman Zamir Hussain Ghumro said the companies perform functions linked to provincial jurisdiction and directed officials to review the constitutional and legal position. He said the matter should be taken to the CCI in line with the committee’s earlier directions.

Ghumro said the companies’ functions could either be regularized through approval from provincial assemblies or transferred to the provinces.

The committee also criticized the Privatisation Commission’s response, alleging that officials were trying to proceed without fresh CCI approval. It warned that failure to follow its directions could lead to parliamentary action, including a possible privilege motion.