Business Recorder
The government has invited expressions of interest (EOIs) from local and foreign investors for the privatisation of three major power distribution companies, Faisalabad Electric Supply Company, Gujranwala Electric Power Company and Islamabad Electric Supply Company, as part of its broader energy sector reform agenda. According to a statement issued by the Privatisation Commission of Pakistan on Tuesday, investors will have the opportunity to acquire between 51 percent and 100 percent shareholding along with management control in each of the three distribution companies. The commission said the move is aimed at improving operational efficiency, enhancing service delivery, attracting domestic and foreign investment, and promoting sustainable growth in the country’s power sector. Collectively, the three DISCOs serve over 14 million consumers across key industrial, commercial and urban centres in Punjab and the Islamabad region. Read More: Govt approves transaction structure for privatisation of IESCO, GEPCO, and FESCO The Privatisation Commission said the process would be conducted in a transparent and competitive manner in line with international best practices. Interested parties may participate individually or through consortium arrangements, subject to qualification requirements outlined in the Request for Statement of Qualification (RSOQ) documents. Separate submissions will be required for each company. The deadlines for submission of EOIs are July 7 for FESCO, August 6 for GEPCO and September 7 for IESCO. The commission said an online investor briefing would also be organised jointly with the financial adviser to explain the transaction structure, investment opportunities and procedural requirements. The government considers the privatisation of power distribution companies a key step toward modernising the energy sector, reducing inefficiencies and increasing private-sector participation, the statement added. The commission further said it would engage with investors and stakeholders to refine the existing DISCO tariff structure, multi-year tariff (MYT) regime, business model and framework for competitive suppliers. According to the statement, the proposed reforms are intended to establish a performance- and efficiency-based return regime while allowing private investors to utilise DISCO infrastructure and customer bases for additional commercial opportunities. The commission reiterated Pakistan’s commitment to providing a predictable investment environment supported by regulatory transparency, policy continuity and institutional reforms.
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