ISLAMABAD: In a significant shift in policy, the government is now considering offering only the Gujranwala Electric Power Company (GEPCO) for outright privatisation, while Islamabad Electric Supply Company (IESCO) and Faisalabad Electric Supply Company (FESCO) are likely to be offered under long-term concession agreements, well-informed sources told Business Recorder.
The Privatisation Commission (PC) is finalising the transaction model for power distribution companies (DISCOs), with Letters of Intent (LoIs) expected to be issued in January 2026. Earlier, the government had planned to privatise GEPCO, IESCO and FESCO outright in the first phase, while Sindh-based DISCOs—Hyderabad Electric Supply Company (HESCO) and Sukkur Electric Power Company (SEPCO)—were to be offered through concession arrangements.
During a meeting chaired by Prime Minister Shehbaz Sharif on December 15, 2025, delays in the privatisation process were discussed. The Ministry of Privatisation informed the Prime Minister that DISCOs were not fully cooperating with the PC in meeting Conditions Precedent (CPs), particularly regarding the transfer of properties. The Prime Minister subsequently directed relevant federal and provincial authorities to ensure full cooperation to resolve these issues.
Power Minister Sardar Awais Ahmad Khan Leghari has been tasked with convening a meeting of stakeholders to address property transfer challenges and accelerate the privatisation process. The Prime Minister also instructed the PC to issue Expressions of Interest (EOIs) for the second phase of DISCO privatisation by December 31, 2025.
Meanwhile, Pakistan has stepped up efforts to attract reputable international investors. During a recent visit by Turkiye’s Energy Minister Alparslan Bayraktar, Minister Leghari highlighted Pakistan’s interest in leveraging Turkiye’s experience in power distribution, particularly its successful concession model.
Under the revised plan, long-term concessions may follow the Turkish model to improve service delivery and reduce losses. In the second phase, Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO) and Hazara Electric Supply Company (HAZECO) will be offered for privatisation, while HESCO, SEPCO and Peshawar Electric Supply Company (PESCO) will be offered under concession arrangements. Tribal Areas Electric Supply Company (TESCO) and Quetta Electric Supply Company (QESCO) will initially be retained for improvement before being offered through management contracts.
The Privatisation Commission’s adviser, Alvarez & Marsal Middle East, has submitted its sectoral due diligence report, identifying several outstanding issues that must be resolved before the process can move forward.
Story by Mushtaq Ghumman
