The Finance Ministry has declined support for a proposal involving senior armed forces officials heading new Performance Management Units (PMUs) in struggling power distribution companies. While the Finance Ministry backed the armed forces' involvement in an anti-electricity theft campaign, it did not endorse their role in managing distribution companies.
The Energy Ministry proposed the idea, but the Finance Ministry opposed it, citing deviation from an earlier approved plan by the Special Investment Facilitation Council (SIFC) limited to anti-theft efforts. The proposal to establish PMUs under military leadership, as suggested by the Power Division, lacked Finance Ministry support. Despite requests for clarification, the Finance Ministry spokesperson remained silent on the military's involvement.
The proposal aimed to place armed forces personnel, alongside officials from various agencies, to manage distribution companies. However, the Finance Ministry objected, highlighting its contravention of the SIFC decision and concerns about increased costs and lack of sector management experience. The interim government's anti-theft drive managed significant savings but failed to prevent a surge in circular debt, largely attributed to distribution companies' inefficiencies and bill recovery issues.
The sector's mismanagement, reflected in substantial losses and looming financial deficits, prompted the government's intensified anti-theft campaign. Amidst this, concerns arose about weak leadership in these companies, threatening the effectiveness of anti-theft initiatives. The Energy Ministry emphasized the dire need for administrative support in several struggling distribution companies, expressing fears that ongoing mismanagement might derail reform efforts.
