Govt imposes mandatory service act on power companies ahead of privatization

ISLAMABAD: The federal government has taken a preemptive measure to ensure a seamless privatization process for power distribution companies, including NTDC and state-owned generation companies (Gencos).

By invoking the Mandatory Service Act, the government aims to prevent potential protests and strikes from employees, which could disrupt the transition.

This move effectively bars employees and unions from organizing strikes or demonstrations, ensuring uninterrupted services during the six months.

Moreover, the Ministry of Interior has issued an official notification, while the Power Division has released guidelines to implement the act.

Consequently, union activities in Discos, NTDC, and Gencos have been suspended, and authorities have warned of strict consequences for any violations.

This decision comes amidst concerns that unions and employees might stage protests during the privatization process, potentially hindering the government’s plans. By enforcing the Mandatory Service Act, the government hopes to facilitate a smooth transition without any disruptions.