- Government invites investors for three major Discos
- 51% to 100% ownership with management control offered
- Transparent, competitive and IMF-backed process
- Consortium participation allowed for investors
- Focus on efficiency, reforms, and improved consumer services
The government of Pakistan has taken a major step towards energy sector reforms and promoting private investment by formally initiating the privatization of the country’s three major power distribution companies.
The Privatization Commission has announced that it is inviting expressions of interest from interested investors in Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO) and Islamabad Electric Supply Company (IESCO).
These three companies supply electricity to major industrial, commercial and urban areas of Pakistan and play a key role in the power distribution system. According to the government, these companies have performed better than other DISCOs, which is why they have been selected for privatization in the initial phase.
According to official documents, investors will be given the opportunity to acquire shares and management control ranging from 51% to 100% in these companies. Along with this, they will have complete freedom to introduce modern management, technology upgradation and operational reforms.
The Privatization Commission has made it clear that the entire process will be carried out in full transparency, competition and in accordance with international best practices. Each company will have to submit separate applications, while the application deadlines have been set from July to September 2026.
The government has allowed both local and foreign investors to participate in the process. Investors can participate individually or through a consortium, but they must meet the eligibility criteria.
The move is part of the broader reforms underway in Pakistan’s energy sector, which are being carried out under a program agreed with the International Monetary Fund (IMF). The main objective of these reforms is to reduce the deficit in the power sector, control circular debt and improve the efficiency of the system.
According to experts, Pakistan’s power sector has long been plagued by problems such as management weaknesses, line losses and financial imbalances, due to which consumers also face difficulties.
Energy policy experts say that if this privatization process is completed successfully, not only will power transmission improve but consumers will also get a more stable and reliable service.
The Privatization Commission has further said that a special online briefing session will also be organized to guide investors, in which detailed information will be given on the proposed business structure, tariff model and regulatory framework.
This development is being considered a major turning point in Pakistan’s energy sector that could open new doors for investment and reforms in the future.
