Jamaat-e-Islami Amir Hafiz Naeem Urges Forensic Audit of IPPs, Federal Minister for Energy Responds
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00:00We had passed the 18th amendment but without building the capacity of the province.
00:04In the same way, we had started giving NFC awards after the 18th amendment,
00:09but we did not see what was going on where.
00:12In the same way, we had taken the matter towards the privatization of PIA,
00:16we had taken it towards the auction, and then what happened was in front of us.
00:20Will such a thing be repeated here?
00:23The preparation of DISCOs at the moment,
00:30Alhamdulillah, all the conditions that we had to meet in order to have the transaction of the privatization,
00:37we have done that.
00:39Our audits of these three companies have been done.
00:42Our balance sheets are about to clear.
00:45Our data rooms,
00:48with complete transparency,
00:51the investors will know everything about these companies.
00:57Complete in-depth analysis.
01:00That was our responsibility of the power division.
01:03Alhamdulillah, we have fulfilled this responsibility in the past few months
01:08and now the privatization commission has this transaction
01:12and we are ensuring that the investors have complete confidence
01:18through which they will have to come and do business in Pakistan.
01:23We are getting a lot of interest at the moment,
01:26but it is still too early to say anything.
01:29But in the future, we are expecting that the privatization of these three companies,
01:35if people have the appetite to invest,
01:38which is now developing in Pakistan,
01:41interest rates are coming down, economic stability is happening,
01:45so the overall financial stability of the sector
01:50will also help us a lot after a few months
01:55compared to the privatization of PIA a few months ago.
01:59So Mr. Laghari, if we look at the timeline,
02:01when can we expect that the process of privatization will go to the auction?
02:06Is it this year?
02:08Anika, I can't say.
02:10I don't want to create a lot of excitement by pre-empting it now,
02:15but it is on a fast track.
02:17Inshallah, we understand that in the next financial year,
02:23Inshallah, well before the end of the financial year,
02:27this transaction will take place and the handover of companies should take place,
02:31Inshallah, if all goes well.
02:33So you said until the end of the next financial year,
02:36so should we think about mid-2026, Mr. Laghari?
02:42No, I have said it very conservatively,
02:45maybe even before that,
02:47but now the transaction advisor is doing the entire sectoral due diligence,
02:55we will address their concerns,
02:59then the architecture of the entire transaction is being formed,
03:03then the privatization commission will be able to tell you better,
03:07but this is my rough assessment,
03:09but the power division and these companies are all set to be privatized.
03:13We have made all the preparations.
03:15You said that there is a lot of interest for investment,
03:19is this coming from outside the country or within the country?
03:24Right now, to assess an appetite within the country,
03:29some things have started with different investment groups,
03:33their feedback is being taken,
03:35outside the country, the utility companies,
03:38the companies that run,
03:40the partnerships with them, the investors will strike themselves,
03:44so it will be a mix of international and local investment,
03:48and expertise and experience,
03:50through which we understand that these transactions will go towards success,
03:56and it will be our requirement,
03:58that the partners who have proper experience,
04:02should definitely come,
04:04so that those who identify the utility business,
04:07and the interest of the consumers,
04:09will also be maintained in the same way.
04:11Right.
04:12Okay, Mr. Laghari,
04:13now at the end this question arises,
04:15that all these circumstances are catering,
04:18the economy is also moving towards stability,
04:20even investors and Pakistani businessmen are giving the feedback,
04:24that things are moving towards stability at this time,
04:27but on one hand, the KPK issue is still there,
04:31they are saying that the electricity that was made by us,
04:33we were not given the money for it,
04:35the CM has also reiterated this,
04:38about the NFC awards,
04:39he has also said that if something goes wrong in the NFC awards in April,
04:42then we will go towards proper protest,
04:45is the power division or the power ministry catering to that issue,
04:49are you talking to KPK, yourself?
04:52As much as our input will be taken,
04:55we will definitely do it,
04:57this is a matter of the Ministry of Water Resources,
04:59and in it, there was a formula called AGM Qazi,
05:03after that complications arose in it,
05:06in it, the minute the matters were done wrong,
05:09there are different complications,
05:11a committee has also been formed,
05:13which sits with the province,
05:16the HIDL profits,
05:19the HIDL charge,
05:22which is given to the provinces,
05:26there is a matter of reconciliation of numbers on that,
05:30I am sure our interest is in the federal government,
05:33so that we do not let any injustice happen to the provinces,
05:38and according to their rights,
05:40their right and due share,
05:42like it is being given in the NFC,
05:44I am sure that it is not an issue that is too complicated,
05:48as soon as the talks will take place,
05:51I am sure the matter will be resolved,
05:54and it will not disturb the structural reforms of our power sector.
06:02Fair enough,
06:03Mr. Nagari,
06:04as we are talking about the opposition,
06:07in the opposition itself,
06:09the Ameer of Jamaat-e-Islami,
06:10Mr. Hafiz Naeem,
06:11is saying that you should get the IPPs,
06:14the ones who have given the support,
06:15a forensic audit done,
06:17and you have worked a lot on IPPs,
06:19you have also been to China,
06:20and you have also discussed this in different places,
06:22can such a thing be on the cards,
06:24can there be a possibility?
06:26All the IPPs that we are renegotiating with,
06:32and trying to reach mutually agreed terms,
06:36which the IPPs do not want to do,
06:39they have a right to get a forensic audit done,
06:43which we will exercise,
06:45and those who want to go into arbitration,
06:47they should definitely go,
06:48they will not stop us from doing this,
06:51it is their right,
06:52we are staying within the legal framework,
06:55or with mutual consultation,
06:57and with mutual agreement,
06:59we are concluding these agreements,
07:02or they are encouraging us to go into arbitration,
07:06but we understand that there is a lot of money,
07:10like we have saved 3600 Arab Rupees so far,
07:15we understand that there will be more savings,
07:18and we will do it,
07:20as far as our Chinese IPPs are concerned,
07:23and the CPEC framework is concerned,
07:25those investments were made under a separate sanctity,
07:28and a government framework,
07:30under the G2G framework,
07:33and we have been exploring debt re-profiling,
07:36coal conversion, and other such matters,
07:39in great detail with our companies,
07:42and their financial institutions,
07:45for many months now,
07:47and God willing,
07:49there will be a time when,
07:51like we have done a financial restructuring
07:54of 1200 Arab Rupees of our Circular Debt,
08:00and we are going to end that Circular Debt in the next 6 years,
08:06in the same way,
08:08through financial restructuring,
08:11and through re-profiling,
08:13we are exploring that we can do it rationally.
08:16All these things can only be done,
08:18if the government is stable.
08:20The government cannot be stable,
08:22without the Pakistan People's Party.
08:24The issue of the Pakistan People's Party,
08:26and the PMLN Government Cabinet,
08:28and the issue at this time,
08:30with regards to the canal,
08:32there is a lot of tension.
08:34Earlier, Bilawal Bhutto Zardari,
08:36was also talking against this.
08:38Is it not that the government,
08:40will become unstable,
08:42due to being on the side of the Union?
08:44I think, all these things,
08:46which are bringing financial stability,
08:48economic stability,
08:50because of that,
08:52the government will become stable.
08:54Our Union is very important for us,
08:56without it,
08:58our existence in the government,
09:00is not possible.
09:02All our support,
09:04and the electricity prices,
09:06which have gone down,
09:08we think that the Union,
09:10has the same role,
09:12as we have,
09:14because without them,
09:16we cannot do these things.
09:18I am sure,
09:20whatever issues they have,
09:22water issues,
09:24I am sure,
09:26the Federal Government,
09:28their sensitivities,
09:30their rightful sensitivities,
09:32will surely,
09:34through discussions,
09:36will satisfy them,
09:38and they are a part of the government.
09:40And without satisfying them,
09:42we cannot move forward,
09:44one-sidedly.
09:46No, I am not saying it is not a big deal.
09:48I am saying that,
09:50we need to sit down,
09:52and talk, and resolve these issues,
09:54and I am sure,
09:56sense will prevail on both sides,
09:58and we will, Inshallah,
10:00resolve these issues,
10:02so that the government,
10:04will not only benefit from it,
10:06but the common people,
10:08and Pakistan will benefit from it.