PM Shehbaz Sharif Directs Fast-Track Privatisation of Electricity Discos
Prime Minister Shehbaz Sharif directed the expedited privatization of electricity distribution companies (Discos) during a meeting focused on the process, according to a statement from the Prime Minister’s Office (PMO). The premier emphasized that privatizing state-owned companies incurring losses is a government priority, while urging the establishment of a “robust regulatory framework” post-privatization.
The government has initiated the first phase of the privatisation drive, targeting Islamabad Electric Supply Company (Iesco), Gujranwala Electric Power Company (Gepco), and Faisalabad Electric Supply Company (Fesco). These three companies, which collectively serve over 14 million consumers across Punjab, Islamabad, and parts of Azad Jammu and Kashmir, have already received expressions of interest (EOIs) from investors. The Cabinet Privatisation Committee has approved the transaction structure, with roadshows planned this month to attract local and international bidders, including entities from Saudi Arabia, Turkiye, and China.
The deadline for submitting EOIs for the partial or full sale of the Discos is set for the first quarter of the next fiscal year. Investors could acquire between 51% and 100% shareholding, along with management control, in each company. The meeting, attended by senior officials including Deputy Prime Minister Ishaq Dar and Finance Minister Muhammad Aurangzeb, marked the latest step in a process delayed for years.
The move reflects broader efforts to reduce fiscal burdens from loss-making state enterprises. However, the success of the privatisation depends on attracting credible investors and ensuring transparency in the process. Analysts note that the inclusion of international bidders could introduce new capital and expertise but may also raise concerns about foreign influence in critical infrastructure.
What remains unclear is how the government will address potential opposition from labor unions or ensure equitable service standards post-privatisation. The next steps will likely involve evaluating investor bids and finalizing terms, with the outcome shaping the future of Pakistan’s electricity distribution network.
What companies are part of the first phase?
The first phase involves Islamabad Electric Supply Company (Iesco), Gujranwala Electric Power Company (Gepco), and Faisalabad Electric Supply Company (Fesco), according to the PMO.
When is the deadline for submitting EOIs?
The deadline for submitting expressions of interest for the sale of the three Discos falls in the first quarter of the next fiscal year, as stated in the briefing.
What shareholding options are available to investors?
Investors may acquire between 51% and 100% shareholding, along with management control, in each of the three distribution companies, according to the transaction details.
Frequently Asked Questions
[Question 1]
[What companies are part of the first phase?]
[The first phase involves Islamabad Electric Supply Company (Iesco), Gujranwala Electric Power Company (Gepco), and Faisalabad Electric Supply Company (Fesco), according to the PMO.]
[Question 2]
[When is the deadline for submitting EOIs?]
[The deadline for submitting expressions of interest for the sale of the three Discos falls in the first quarter of the next fiscal year, as stated in the briefing.]
[Question 3]
[What shareholding options are available to investors?]
[Investors may acquire between 51% and 100% shareholding, along with management control, in each of the three distribution companies, according to the transaction details.]
How might the privatisation of these companies impact electricity service quality for the 14 million consumers they serve?