A consortium of seven Pakistan Stock Exchange (PSX)-listed companies has formally entered the race to acquire the Faisalabad Electric Supply Company (FESCO) as part of the government’s ongoing power sector privatization program.
Each company has informed the PSX that its board of directors has approved participation in the proposed transaction and authorized joining the consortium to pursue the acquisition.
The consortium includes Pakgen Limited, Lalpir Limited, Nishat Power Limited, Nishat Chunian Power Limited, Nishat Mills Limited, Kohinoor Energy Limited, and Pak Elektron Limited (PEL).
According to the disclosures, the consortium has obtained the Request for Statement of Qualification (RSOQ) issued by the Privatization Commission for FESCO’s privatization process. Pakgen Limited has been appointed as the lead member of the consortium and has been authorized to represent all consortium members throughout the bidding process.
The companies emphasized that no binding commitment has yet been made regarding the acquisition. Their participation remains subject to pre-qualification by the Privatization Commission, due diligence, and all necessary corporate and regulatory approvals.
The consortium brings together companies from some of Pakistan’s largest business groups. The Nishat Group is represented by Nishat Mills, Nishat Power, Pakgen, and Lalpir, while Nishat Chunian Power represents the Nishat Chunian Group. The Saigol Group is participating through Pak Elektron Limited (PEL) and Kohinoor Energy.
FESCO is regarded as one of Pakistan’s best-performing state-owned electricity distribution companies, serving more than 5.5 million consumers across eight districts of central Punjab, including Faisalabad, the country’s largest textile manufacturing hub.
The utility has consistently recorded among the lowest transmission and distribution losses and one of the highest bill recovery rates among government-owned power distribution companies (DISCOs), making it one of the most attractive assets in the government’s privatization agenda.
Under the first phase of the DISCO privatization program, the Privatization Commission is offering investors between 51% and 100% ownership, along with management control, in FESCO. The move is part of broader government efforts to improve efficiency, attract private investment, and reduce the financial burden of the power sector.
