ISLAMABAD, AUGUST 29, 2026: The Privatisation Commission Board has approved the prequalification of 10 out of 12 interested parties for the privatisation of Faisalabad Electric Supply Company (FESCO), with K-Electric withdrawing its Expression of Interest (EoI) and a Chinese company failing to meet the prequalification requirements.
The decision was taken at a meeting of the Privatisation Commission Board chaired by the Prime Minister’s Adviser on Privatisation and Chairman of the Privatisation Commission.
K-Electric, Pakistan’s only privatised power distribution utility, withdrew its EoI before the prequalification process was completed. The company said its audited financial statements for the past two years were not yet available due to the ongoing finalisation of its Multi-Year Tariff (MYT), a requirement under the prequalification criteria.
A K-Electric spokesperson confirmed the withdrawal, saying the company remained committed to pursuing opportunities that could maximise value for its stakeholders.
Meanwhile, Jiang Xi Electric Power Construction of China failed to qualify after submitting its EoI in Chinese on the final day of the submission period and not providing an English-language version despite repeated requests.
Following an evaluation of submissions against the approved criteria, the financial adviser recommended 10 parties for prequalification and progression to the next stage of the transaction.
The prequalified bidders include three Turkish companies: Aktor Elektrik Enerji Yatırımları San. ve Tic. A.S., Genvera Enerji A.S. (Celik Group) and Cengiz Enerji Sanayii ve Ticaret A.S.
The seven Pakistani groups are Engro Energy Ltd, Sapphire Fibres Ltd, Hub Power Holdings, Lucky Cement and Metro Ventures, Shirazi Investments (Pvt) Ltd (Atlas Group), Maple Leaf Cement and Kohinoor Cement, Pakgen Ltd Consortium comprising Nishat Mills, Nishat Power, Nishat Chunian, Lalpir, Pak Elektron Ltd and Kohinoor Energy, and Artistic Milliners (Pvt) Ltd.
The prequalified parties will now move to the next stage of the transaction, including access to the Virtual Data Room (VDR) to conduct detailed buy-side due diligence.
The Privatisation Commission said the proposed privatisation is aimed at improving operational efficiency, modernising electricity distribution infrastructure, strengthening customer services and reducing system losses. The process is also intended to support greater financial sustainability and create conditions for more competitive electricity distribution and reliable power supplies.
The Board also approved the reconstitution of its Audit and Risk, Human Resources, Investment and Legal Committees.
FESCO is one of three distribution companies included in the first batch of the government’s privatisation programme. Gujranwala Electric Power Company (GEPCO) has received 11 EoIs, with several interested parties also competing for FESCO.
Meanwhile, the submission deadline for Expressions of Interest for Islamabad Electric Supply Company (IESCO), the third Disco in Batch-I, has been set for September 7, 2026.
Story by Khaleeq Kiani
