Privatisation Commission Board approves restructuring plan for Faisalabad Electric Supply Company

ISLAMABAD: The Privatisation Commission (PC) Board approved the restructuring plan for Faisalabad Electric Supply Company (FESCO) at its meeting held Fridayday under the chair Muhammad Ali, Adviser to the Prime Minister on Privatisation and Chairman of the Privatisation Commission.

FESCO forms part of the first batch of Power Distribution Companies (DISCOs) identified for privatisation, alongside Gujranwala Electric Power Company (GEPCO) and Islamabad Electric Supply Company (IESCO). The restructuring plan, prepared by the financial adviser, will now be submitted to the Cabinet Committee on Privatisation (CCoP) for consideration and approval.

The commission has already invited Expressions of Interest (EOIs) from domestic and international investors for the privatisation of the first batch of DISCOs, marking a significant step towards expanding private sector participation in Pakistan’s power distribution sector and improving operational performance.

The Board also approved the consortium led by KPMG, in association with Bridge Factor and other consortium partners, as the highest-ranked bidder for appointment as Financial Adviser for House Building Finance Company Limited (HBFCL).

To facilitate the next phase of the transaction, the Board constituted a Negotiation Committee to finalise the Financial Advisory Services Agreement (FASA) with the successful consortium.

In another important agenda item, the Board reviewed the proposed Transaction Advisory Services Agreement (TASA) with the Asian Development Bank (ADB) for the outsourcing of operations at Islamabad International Airport (IIAP). Following a detailed discussion, the Board appreciated the progress made on the transaction and provided guidance on certain provisions of the proposed agreement, seeking further clarity before its consideration at a subsequent meeting.

The proposed transaction envisages the engagement of a qualified private sector operator under a long-term concession framework through a transparent and competitive process. The initiative is aimed at enhancing operational efficiency, improving passenger experience, and aligning airport services with international best practices.

The Board further approved the budget estimates of the Privatisation Commission for the financial year 2026–27, enabling the organisation to effectively pursue its strategic objectives and manage an expanding pipeline of transactions.