The Privatisation Commission (PC) is progressing with the privatisation of three major power distribution companies (DISCOs) – Islamabad Electric Supply Company (IESCO), Gujranwala Electric Power Company (GEPCO), and Faisalabad Electric Supply Company (FESCO) – with plans to complete the process by the end of 2024. According to informed sources, the Commission will seek approval from the Cabinet Committee on Privatisation (CCoP) before taking the transaction to the market.
The Ministry of Privatisation has confirmed that a Request for Proposal (RFP) for hiring a Financial Advisor (FA) for the private sector participation (PSP) process in these DISCOs has been finalized, with input from the Power Division and the World Bank. The hiring of the Financial Advisor is currently underway.
Prime Minister Shehbaz Sharif, during a meeting on December 27, 2024, expressed concerns about delays in the appointment of CEOs for these DISCOs and was updated on the progress of their privatisation.
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Sources indicated that the World Bank has provided a detailed report on the privatisation, which has been shared with stakeholders, including the Privatisation Commission. The Power Division is set to complete the necessary tasks outlined in the report by January 31, 2025. The Financial Advisor will review progress and suggest adjustments during the due diligence process.
The Privatisation Commission is also revising eligibility criteria and investor qualifications based on feedback from potential investors. Additionally, the Special Investment Facilitation Council (SIFC) has directed the Power Division to complete nine prior actions related to the World Bank’s requirements by January 31, 2025.
The Privatisation Division has been tasked with accelerating the hiring process for the Financial Advisor and finalizing the RFP, with clear timelines to be presented to SIFC by January 15, 2025.
