The move has been taken to provide the newly appointed management board more autonomy.
The government also unveiled proposed to sell 10% stake in the Islamabad Electric Supply Company (IESCO), as part of a plan to avoid using public funds.
The plan will seek approval from the cabinet and the Cabinet Committee on Privatisation and the Privatisation Commission.
The power companies will prepare their final balance sheets, once the assets are transferred and IESCO’s stake is sold.
If the stake sale is profitable, other distribution companies will follow suit and float their shares for initial public offerings, according to tribune.com.pk.
The companies will be able to acquire loans under revolving credit guarantee by pledging their assets and will also be able to issue Islamic bonds through the Civil Aviation Authority.
