Pakistan’s privatisation of electricity distribution companies reached a key milestone after the deadline for submitting Expressions of Interest for the Faisalabad Electric Supply Company concluded with strong participation from local and international investors.
Adviser to the Prime Minister on Privatisation and Chairman of the Privatisation Commission, Muhammad Ali, said Friday that 12 investor consortiums, comprising more than 12 individual companies and business groups, formally submitted EOIs for FESCO. The interested parties include three consortiums from Turkey, one investor group from China, and eight major Pakistani business groups participating both individually and through joint consortiums.
Muhammad Ali said the response reflects growing investor confidence in Pakistan’s power sector reforms and follows a six-month engagement process led by the Privatisation Commission. Since launching investor outreach in January, the commission has held multiple presentations and consultative sessions aimed at building market confidence and encouraging participation.
He said the privatisation initiative is intended to establish a post-privatisation framework focused on reducing electricity tariffs for domestic, commercial, and industrial consumers, fostering competition in the power supply business, modernising and digitising grid infrastructure, and ensuring affordable and efficient electricity supply nationwide.
With the FESCO EOI process now complete, the Privatisation Commission and relevant authorities will begin due diligence with shortlisted investors. The broader privatisation process for other distribution companies continues to move forward: the EOI submission deadline for Gujranwala Electric Power Company (GEPCO) is expected within the next two weeks, while the deadline for Islamabad Electric Supply Company (IESCO) has been set for September 7. Preliminary work and transaction structuring for Hyderabad Electric Supply Company (HESCO) and Sukkur Electric Power Company (SEPCO) are also officially underway.
Officials expressed optimism that the current momentum would help ensure a transparent and successful privatisation process for the DISCOs, describing it as an important step toward advancing reforms in Pakistan’s power sector.
