The finance ministry is against a new proposal for the management of the power sector.

The finance ministry has not lent support to an official proposal advocating the appointment of senior armed forces officers as heads of new Performance Management Units (PMUs) in struggling power distribution companies to enhance their management. However, the finance ministry has endorsed the Special Investment Facilitation Council's (SIFC) original decision to involve the armed forces in an ongoing anti-electricity theft campaign. An official from the Ministry of Energy revealed that the armed forces themselves are not inclined to assume a role in the management of power distribution companies, with the proposal originating from the Power Division finding no favor with the finance ministry.

Contrary to the Power Division's proposal, the SIFC did not suggest the creation of new PMUs or the appointment of senior army officers as heads. The finance ministry's lack of support for the Energy Ministry's proposal reflects its alignment with the SIFC's decision, which only approved the armed forces' involvement in an anti-theft capacity. Sources within the Energy Ministry disclosed that the finance ministry deemed the proposal in violation of the SIFC's decision, raising concerns about its potential cost and the lack of expertise in managing the power sector.

Despite repeated attempts, the finance ministry's spokesperson, Qamar Abbasi, did not respond to inquiries about the ministry's stance on military involvement. The Power Division had prepared a summary for the federal cabinet proposing the establishment of PMUs in all power distribution companies, each led by a grade 20 armed forces officer. The pilot project was suggested for the Hyderabad Electricity Supply Company (HESCO), under the command of a brigadier reporting directly to the federal secretary of power, Rashid Langrial. The finance ministry's opposition to military involvement centered on the absence of a proposal from the SIFC, raising questions about additional costs and concerns over the power sector's management inexperience.

The interim government's anti-electricity theft campaign, aimed at saving costs, has reportedly yielded Rs63.6 billion in savings, including Rs51.1 billion in cash recoveries. However, the Circular Debt Report for October 2023 reveals a worsening performance in power distribution companies, with circular debt increasing to Rs2.61 trillion in October. The additional debt is attributed to inefficiencies and decreased bill recovery by the distribution companies. Concerns over mismanagement in the power sector prompted the government's anti-theft campaign, with an estimated Rs589 billion loss expected this fiscal year due to bill recoveries and electricity theft. The Energy Ministry highlighted the need for administrative assistance in power distribution companies facing capacity limitations in Hyderabad, Sukkur, Peshawar, and Quetta.