Pakistan has taken another step toward the privatization of three major power distribution companies after the Privatisation Commission (PC) Board recommended approval of restructuring plans for Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), and Islamabad Electric Supply Company (IESCO).
The recommendation was made during a meeting chaired by Adviser to the Prime Minister on Privatisation Muhammad Ali and will now be presented to the Cabinet Committee on Privatisation (CCoP) for final approval.
The proposed restructuring plans are based on the companies’ audited financial statements as of March 31, 2026. Officials said the plans are designed to maximize value for the government while making the companies more attractive to potential private investors.
Under the proposed framework, the government will establish a Special Purpose Vehicle (SPV) to separate selected assets and liabilities of the three distribution companies, creating a cleaner structure for the privatization process.
The Privatisation Commission Board was informed that both local and international investors have expressed strong interest in the first phase of DISCO privatization. The deadlines for submitting Expressions of Interest (EOIs) have been set as August 7 for FESCO, August 21 for GEPCO, and September 7 for IESCO.
Separately, the Privatisation Commission also formed two transaction committees to oversee the outsourcing process of Islamabad, Lahore, and Karachi airports. The Asian Development Bank (ADB) has been appointed as the financial adviser for Islamabad International Airport, while advisers for Lahore and Karachi airports are currently being selected.
The Privatisation Commission said the government’s privatization programme will continue through a transparent and competitive process aimed at improving efficiency, attracting investment, and maximizing public value.
