The Ministry of Privatisation has decided to privatize two of Pakistan’s largest power distribution companies—Lahore Electric Supply Company (LESCO) and Multan Electric Power Company (MEPCO)—in their current corporate structures rather than bifurcating them into smaller entities. The decision follows recommendations from a Technical Committee constituted by the Privatisation Commission, which concluded that restructuring or dividing the companies would cause unnecessary administrative delays.
Key details surrounding the transaction and companies include:
- Hiring of Financial Advisers: The Privatisation Commission has invited Requests for Proposals (RFPs) from interested consortia and firms to serve as Financial Advisers and manage private-sector participation in both entities.
- MEPCO (Multan Electric Power Company): Serves as Pakistan’s largest power distribution company by consumer base, supplying power to 8.76 million customers across 13 districts of southern Punjab through 82,000 kilometers of distribution lines and over 780 grid stations.
- LESCO (Lahore Electric Supply Company): Operates across Lahore, Kasur, Sheikhupura, Nankana Sahib, and Okara, providing electricity to roughly 7.05 million consumers.
- Operational Challenges: Both DISCOs continue to struggle with high line losses, power theft, and low recovery rates, with FY2024–25 audits rating their overall performance as unsatisfactory. Both are currently attempting to modernize through Advanced Metering Infrastructure (AMI) and digital billing.
By keeping LESCO and MEPCO intact, the federal government aims to streamline the transaction process and avoid the legal and operational complications associated with corporate restructuring.
