Pakistan advances privatization of first batch of power DISCOs
- By Web Desk -
- Jul 29, 2026
The Privatization Commission Board in Pakistan has approved key recommendations for submission to the Cabinet Committee on Privatization regarding the privatization of the first batch of power distribution companies.
The PC Board meeting was held under the chair of Muhammad Ali, the prime minister’s adviser on privatization and chairman of the Privatization Commission.
The board recommended that the Cabinet Committee on Privatization (CCoP) approve restructuring plans for the Faisalabad Electric Supply Company (FESCO), the Gujranwala Electric Power Company (GEPCO), and the Islamabad Electric Supply Company (IESCO).
The restructuring plans and schemes of arrangement have been prepared on the basis of the audited financial statements of the three DISCOs for the period ended March 31, 2026.
The proposed framework is designed to maximize value for the Government of Pakistan while ensuring that the transactions remain commercially viable and attractive to prospective private-sector investors.
As part of the plan, the government will establish a Special Purpose Vehicle (SPV) to separate selected assets and liabilities from the three companies before they are offered for privatization.
The move is aimed at simplifying the transaction structure and improving its commercial viability.
The Board was also apprised of strong interest from both domestic and international investors in the privatization of the first batch of DISCOs. The deadlines for submission of Expressions of Interest (EOIs) are August 7, 2026, for FESCO; August 21, 2026, for GEPCO; and September 7, 2026, for IESCO.
Separately, the board approved the formation of two transaction committees to oversee the outsourcing of operations at Islamabad, Lahore and Karachi airports.
The Asian Development Bank (ADB) has been appointed as financial adviser for the outsourcing of Islamabad International Airport, while advisers for Lahore and Karachi airports are still being selected.
The Board also approved the appointment of RSM Avais Hyder Liaquat Nauman, Chartered Accountants, as auditors for privatization transactions completed during the financial years 2024–25 to 2026–27.
The firm will undertake separate audits of each completed privatization transaction, while the annual audit of the Privatization Commission’s financial statements for the financial years 2025–26 to 2027–28 will be carried out by BDO Ebrahim & Co., Chartered Accountants, which was appointed earlier through a competitive bidding process.
The Board reaffirmed its commitment to implementing the Government’s privatization program in a transparent, competitive, and professionally managed manner aimed at promoting efficiency, attracting private investment, and maximizing value for the Government and the people of Pakistan.