ISLAMABAD, July 24, 2025: Three electricity distribution companies—Islamabad Electric Supply Company (Iesco), Faisalabad Electric Supply Company (Fesco), and Gujranwala Electric Power Company (Gepco)—are set to be privatised by the end of December 2025, officials from the Power Division confirmed during a meeting of the National Assembly’s Standing Committee on Economic Affairs.
Chaired by MNA Muhammad Atif Khan, the committee was informed that the privatisation of these three Discos is in its final stages. Additional Secretary Power Division Mehfooz Bhatti stated that due diligence is nearly complete, a financial advisor has been hired, and the Privatisation Commission is finalising the financial structure. Expressions of Interest (EOIs) and sale-purchase terms are expected to be issued by year-end.
While not opposing privatisation, the committee raised concerns about halts in hiring at these utilities. MNA Atif Khan highlighted staffing shortages in his constituency, citing just one lineman available for hundreds of kilometers. The Power Division clarified that no official order was issued to freeze hiring.
MNA Sher Ali Arbab revealed that although there are around 80,000 vacancies across all 10 Discos, only 20,000–25,000 hires have been approved by the Prime Minister to keep operations afloat.
Committee members criticized the selective privatisation approach that targets only efficient utilities, cautioning that retaining underperforming Discos could intensify long-term challenges and make future privatisation efforts even more difficult.
The Power Division also briefed the committee on the current installed power generation capacity of 39,952 MW, of which 54% is fossil fuel-based and only 46% comes from clean energy. A surplus of 7,000 to 8,000 MW was also reported, prompting concerns over growing capacity payments that burden the national exchequer.
Further, the committee expressed dissatisfaction with the distribution of development projects in the 2025–26 federal budget. KP, despite having a larger population than Gilgit-Baltistan, received only two new projects, the same as GB. Budget allocations showed stark disparities: Balochistan (Rs209.6 billion), Sindh (Rs145.9 billion), Punjab (Rs76.6 billion), and KP (only Rs30.843 billion).
Meanwhile, the Economic Affairs Division (EAD) reported filing appeals and interim relief applications, with hearings scheduled for September. EAD has also sought federal cabinet approval for the proposed “Foreign Contributions (NGOs and NPOs) Regulation Act, 2025,” aimed at closing legal gaps in regulating foreign donations.
Story by Hamza Habib
