ISLAMABAD – Pakistan moved step closer to one of major power-sector reforms in years, with the government aiming to privatize three of its largest electricity distribution companies (DISCOs) this year.
The update was presented to National Assembly’s Standing Committee on Privatization, where Privatization Commission Secretary Usman Akhtar Bajwa confirmed that the sale process for the Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), and Islamabad Electric Supply Company (IESCO) has entered the formal bidding stage after Expressions of Interest (EOIs) were invited from local and international investors earlier this year.
Under the proposed structure, investors will be offered between 51% and 100% ownership in each company, along with full management control. The move is designed to allow successful bidders to take operational responsibility for the utilities, which together provide electricity to more than 14 million consumers across Punjab’s industrial belt and the Islamabad region.
The bidding schedule has already been announced, with applications due by August 6 for GEPCO, August 7 for FESCO, and September 7 for IESCO. Interested investors are also required to submit a non-refundable processing fee as part of the application process.
The three companies were picked because they are among Pakistan’s strongest-performing state-owned power distributors. Their transmission and distribution losses remain between 9% and 10%, substantially lower than those of most other public-sector DISCOs, making them more attractive to private investors.
The privatization is part of Pakistan’s broader economic reform agenda under its International Monetary Fund (IMF)-backed program, which seeks to improve efficiency, increase bill recovery, reduce electricity losses, and address the country’s long-standing circular debt crisis.
Officials pointed to Turkey’s power-sector reforms as a successful example, arguing that private-sector participation significantly reduced losses and improved the financial performance of electricity distribution companies.
Despite the progress, challenges remain. Pakistan’s Central Power Purchasing Agency (CPPA) reportedly owes around Rs. 560 billion to Chinese independent power producers, an issue analysts believe could affect investor confidence if left unresolved.
The latest is another delay in the government’s privatization plans. The sales were initially expected to conclude by the end of 2025 before being pushed to mid-2026. The target has now been revised to the final quarter of 2026, reflecting the complexity of the transaction and broader sectoral challenges.
No More Free Electricity for LESCO officers as 10,000 Free Units/Year perk comes to an End
