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.

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