Power Division has imposed a ban on the distribution of dividends to employees under the Workers’ Welfare Foundation (WWF), tightening financial controls on state-backed electricity companies amid continued reliance on public subsidies.
Under the directive, state-owned power companies operating with government subsidy support, as well as power producers established through government-to-government (G2G) joint ventures and financing arrangements, have been instructed not to distribute any form of dividends to officers or employees until further notice.
The order was issued in an official order circulated last Tuesday by the Power Division’s Company Affairs Wing to electricity supply entities.
According to the directive, dividend payments—whether direct or indirect—are prohibited as long as government subsidy support remains in place and until all foreign loans taken under facility or benefit agreements are fully repaid.
Officials said the move is aimed at enforcing financial discipline and ensuring the prudent use of public funds, at a time when the power sector continues to face mounting fiscal pressure. The directive has taken immediate effect and will remain in force until a further decision is announced.