Pakistan has moved forward with a major power sector reform plan by inviting investors to participate in the privatisation of three leading electricity distribution companies. The Privatisation Commission has officially sought expressions of interest from both local and foreign investors for the sale of Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), and Islamabad Electric Supply Company (IESCO).
The initiative is being described as one of the biggest structural changes in Pakistan’s energy sector in recent years. Officials believe the move could help improve efficiency, attract investment, and modernize the country’s electricity distribution system.
Among the companies included in the plan, IESCO is considered one of the most profitable and operationally stable electricity distribution companies in Pakistan. The company provides electricity to millions of consumers in Islamabad, Rawalpindi, and surrounding regions. Along with FESCO and GEPCO, IESCO serves a large network of residential, commercial, and industrial consumers.
The three companies were originally separated from WAPDA in 1998 under a restructuring strategy. At that time, the government had planned to privatise them within a few years. However, the process remained delayed for nearly three decades due to political and administrative reasons.
The government has now revived the privatisation process as part of broader economic reforms. Officials said the reforms are linked to commitments made under the International Monetary Fund (IMF) program. Authorities believe private sector participation can help reduce financial losses and improve service delivery in the energy sector.
Under the proposed model, investors will be allowed to acquire between 51 percent and 100 percent shares in each company. Successful bidders may also receive full management control. This structure allows investors to choose either partial ownership or complete operational control of the companies.
The Privatisation Commission has also announced separate deadlines for each company. Applications for FESCO will close on July 7, 2026. GEPCO submissions are due by August 6, 2026, while IESCO applications must be submitted by September 7, 2026.
Officials confirmed that investors can apply individually or through consortiums. However, separate applications will be required for each company. Authorities added that every DISCO will be assessed independently under a structured qualification process.
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The government considers these companies strategically important due to their large customer base and role in supplying electricity to major urban and industrial areas. With more than 14 million consumers combined, the three firms remain key assets in Pakistan’s national energy infrastructure.
