Pakistan pushes ahead with power sector privatisation plan

ISLAMABAD: The Privatisation Commission (PC) Board has recommended approval of restructuring plans and schemes of arrangement for the privatisation of the first batch of power distribution companies (DISCOs), including Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), and Islamabad Electric Supply Company (IESCO).

The recommendation was made during a board meeting chaired by Muhammad Ali, Adviser to the Prime Minister on Privatisation and Chairman of the Privatisation Commission. The proposed restructuring plans will now be submitted to the Cabinet Committee on Privatisation (CCoP) for approval.

According to the Privatisation Commission, the restructuring framework has been developed using the audited financial statements of the three DISCOs for the period ending March 31, 2026.

The plan aims to maximize value for the Government of Pakistan while ensuring the transactions remain commercially viable and attractive to local and international investors.

Under the proposed model, a government-owned Special Purpose Vehicle (SPV) will be established to separate selected assets and liabilities of the three power distribution companies, creating a more efficient structure for the privatisation process.

The board was informed that investor interest in the first batch of DISCOs has been encouraging. The deadlines for submitting Expressions of Interest (EOIs) are August 7, 2026, for FESCO, August 21, 2026, for GEPCO, and September 7, 2026, for IESCO.

In a separate decision, the board constituted two Transaction Committees to oversee the outsourcing of Islamabad, Lahore, and Karachi airports.

The Asian Development Bank (ADB) has been appointed as the financial adviser for the outsourcing of Islamabad International Airport, while the process of appointing financial advisers for Lahore and Karachi airports is in progress.

The board also approved the appointment of RSM Avais Hyder Liaquat Nauman, Chartered Accountants, to audit privatisation transactions completed during the financial years 2024-25 through 2026-27. Annual audits of the Privatisation Commission’s financial statements for 2025-26 to 2027-28 will continue to be conducted by BDO Ebrahim & Co., Chartered Accountants, which was appointed earlier through a competitive bidding process.

Reaffirming its commitment to the government’s privatisation agenda, the board said the programme would be implemented through a transparent, competitive, and professionally managed process aimed at improving efficiency, attracting private investment, and maximizing value for the government and the people of Pakistan.