The Power Division has informed the Senate Standing Committee on Privatization that all power distribution companies will be privatized under a phased plan. Officials said preparations from the government’s side have been completed. The plan aims to improve efficiency and reduce long-standing losses in the power sector.
According to the briefing, the privatization process will be carried out in three phases. In the first phase, IESCO, FESCO, and GEPCO will be privatized. These companies were selected due to their operational readiness and market interest. Each DISCO in this phase will be auctioned separately.
The second phase will include PESCO and SEPCO. Officials said work on these companies is underway. Structural and financial issues are being reviewed before bidding begins. The third phase will cover LESCO, MEPCO, and HESCO. This phased approach is meant to reduce risks and ensure smooth execution.
During the meeting, officials shared international examples to support the plan. They referred to Turkey’s experience in the power sector. In Turkey, power companies with losses near 80 percent were privatized. These companies later became profitable after reforms and private investment.
The Privatization Commission secretary told the committee that bidding for the first three DISCO entities will begin in January. The government expects the process to conclude by mid-next year. Investors will be required to commit to reducing losses after taking control.
Committee members raised concerns about provincial coordination and loss burdens. They also questioned private sector interest in weaker regions. Officials responded that strict conditions will be included in agreements. If privatization faces delays, the issue will be sent back to the cabinet for review.
The meeting also discussed the privatization of Pakistan International Airlines. Officials confirmed that bidding for PIA will take place on December 23. The bidding will be broadcast live on the prime minister’s instructions.
The Privatization Commission said 51 to 100 percent shares of PIA will be offered. All bidders have completed due diligence. They were given access to PIA’s routes, records, and facilities. Each bidder must deposit Rs. 2 billion as earnest money.
Officials added that major issues were resolved after talks with the IMF. These included taxes, GST exemptions, and legacy liabilities. Routes to the UK and Europe have also reopened. The winning investor will be required to inject Rs. 80 billion immediately after privatization.
In other related news also read PHC Prohibits Government Resources for Political Activities
The government believes these steps will improve services and reduce financial pressure. The DISCO reform plan is seen as a key part of broader economic restructuring efforts.
