Kohistan and Kolai Districts Transferred from PESCO to HAZECO

By Salman Khan:
Government has Transferred Kohistan Lower, Kohistan Upper, and Kolai Palias Districts from Peshawar Electric Supply Company (PESCO) to Hazara Electric Supply Company (HAZECO).

According to the Power Division, the Federal Cabinet, in its decision on July 20, 2023 had approved the bifurcation/reorganization of Peshawar Electric Supply Company (PESCO) and the formation of Hazara Electric Supply Company (HAZECO).

Consequently, the power distribution and supply business in Hazara I & II circles were transferred to HAZECO from PESCO. The Power Division officials say that the Chairman of the Standing Committee of the National Assembly of Pakistan on Energy (Power Division) recommended that Kohistan Lower, Kohistan Upper, and Kolai Palias districts, currently under PESCO’s service jurisdiction, may also be transferred to HAZECO for smooth functioning.

As per Section 29 of the State-Owned Enterprises (Governance and Operations) Act, 2023 (SOEs Act, 2023), the Federal Government shall exercise the rights and powers in all State-Owned Enterprises (SOEs).

DISCOs, being SOEs, are presently controlled by the Federal Government and managed by the Power Division as per the entry in Schedule II of the Rules of Business, 1973.

Accordingly, as per the requirements of the SOEs Act, 2023, and the Companies Act, 2017, the approval of the Federal Government was required to divide and subsequently transfer one company’s assets to another company.

Power division had asked the government for approval that was necessary for Hazara Electric Supply Company (HAZECO) to take over PESCO’s power distribution and supply business in the districts of Kohistan Lower, Kohistan Upper, and Kolai Palias, and to commence business, subject to all legal and regulatory requirements.