ISLAMABAD: The Prime Minister’s Office (PMO) has instructed the Power Division to expedite consultations and finalize proposals regarding the privatisation and provincialisation of power distribution companies (DISCOs), according to informed sources.
The finalized roadmap is to be developed through the Task Force on Power Sector Reforms and submitted to the Steering Committee on DISCOs Privatisation.
In a significant decision, the Cabinet approved the outright privatisation of three DISCOs—Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO), and Gujranwala Electric Power Company (GEPCO)—in its meeting held on August 13, 2024, marking the first phase of the initiative.
The second phase will include LESCO, MEPCO, and HAZECO, while HESCO, SEPCO, and PESCO will be offered under a Concession Model through long-term agreements. TESCO and QESCO will remain under federal government control.
Supported by World Bank’s Non-Lending Technical Assistance (NLTA), the Power Division has completed a consolidated report, fulfilling the Conditions Precedent (CPs) set by the Cabinet Committee on Privatisation (CCoP) and the Government of Pakistan, along with additional World Bank requirements as of January 31, 2025.
A Financial Advisor for the first-phase DISCOs was appointed by the Privatisation Commission, with advisory services commencing in February 2025. The four-phase process includes:
- Sector-level due diligence – completed March 18, 2025
- Company-level due diligence – reports submitted May 8, 2025
- Transaction preparation – due by June 20, 2025
- Transaction implementation – expected by January 15, 2026
Additionally, the Prime Minister had earlier directed a comprehensive review of DISCOs’ provincialisation, calling for collaboration with provincial governments and a detailed roadmap. This process is to run parallel with the privatisation track, particularly for IESCO, FESCO, and GEPCO.
The Tariff Reduction Committee, led by Deputy Prime Minister/Foreign Minister Senator Ishaq Dar, is reviewing the Power Division’s proposal with input from provincial stakeholders. A firmed-up proposal will be submitted for Prime Minister’s final approval.
Story by Mushtaq Ghumman
