In light of potential protests concerning the privatisation of state-owned electricity distribution companies (Discos), the federal government has enforced the Essential Services Act for such entities.

According to sources from the Power Division, the federal government has implemented the Essential Services Act for Discos and it would also apply to the National Transmission and Dispatch Company (NTDC) and the Generation Companies (Gencos).

Under the Essential Services Act, protests and strikes within such companies would be prohibited.

With the enforcement of the Act, employees and their unions would not be able to interfere with operations.

Similarly, there would be a ban on union activities within the state-owned Discos, the NTDC, and Gencos. Violators of the Essential Services Act would face legal action.

Sources added that the federal government has enacted the Essential Services Act for all power sector entities for six months. Following the notification, the interior ministry has issued directives to the Power Division.

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Last month, the Cabinet Committee on Institutional Reforms recommended curtailing 150,000 vacant positions, banning contingency recruitment, and outsourcing non-core services like cleaning, and janitorial work, which would gradually phase out many positions in grades 1 to 16.

The committee’s proposal involved closing 28 institutions across above mentioned five ministries, transferring the privatisation ministry and some other ministries to federal units and merging 12 institutions within such ministries.

In June, PM Shehbaz ordered the wrapping up of the Pakistan Public Works Department (Pak PWD) due to “years’ long poor performance and corruption.” The federal government has vowed to cut expenditures to improve the economy.