ISLAMABAD: The Sindh government has decided to appoint a Transaction Advisor to oversee the transfer of ownership of two Sindh-based power distribution companies — Hyderabad Electric Supply Company (HESCO) and Sukkur Electric Power Company (SEPCO) — to the provincial government under a long-term concession model, following comprehensive due diligence, official sources told Business Recorder.
The decision was formally conveyed to the Power Division in response to a letter from Secretary Power Division, Dr. Fakhre Alam Irfan.
In January 2025, Prime Minister Shehbaz Sharif had directed the Power Division to pursue both provincialisation and privatisation of Power Distribution Companies (Discos) in parallel, in line with Pakistan’s commitments to development partners. He emphasized the preparation of a roadmap and timeline, in consultation with provincial governments, for his review and approval.
Under the plan, the Power Division is simultaneously working on the privatisation of three Discos — Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO), and Gujranwala Electric Power Company (GEPCO) — with a deadline to complete all preparatory actions by January 31, 2025.
Sources confirmed that the Power Division has already shared progress updates with the visiting IMF Review Mission, noting that “most actions related to Disco reforms are on track.”
The Privatisation Commission is also coordinating with relevant entities to advance the process, though it continues to face delays in receiving essential documentation from some Discos.
On June 18, 2025, the Privatisation Commission Board approved the initiation of the process to appoint Financial Advisers (FAs) for enhancing private sector participation in HESCO, SEPCO, Peshawar Electric Supply Company (PESCO), and Hazara Electric Supply Company (HAZECO).
Following this, on September 22, 2025, Sindh’s Secretary of Energy, Mushtaque Ahmed Soomro, informed the Power Division that a high-level meeting chaired by Chief Minister Murad Ali Shah had resolved to proceed with the appointment of a Transaction Advisor for HESCO and SEPCO’s transfer to the provincial government or for developing a long-term concessional model.
Meanwhile, the Khyber Pakhtunkhwa government is also evaluating similar options for assuming ownership of PESCO and HAZECO.
According to officials, the Privatisation Commission continues to monitor the implementation of key conditions, including the recognition of off-balance-sheet liabilities, as part of the ongoing reform process in Pakistan’s power distribution sector.
Story by Mushtaq Ghumman
