- Privatization of FESCO, GEPCO and IESCO accelerated
- Performance-based reform model introduced
- AIIB highlights strategic importance of N-5 highway project
- Pakistan strengthens global infrastructure partnerships
- Panda bond issuance boosts financial credibility
ISLAMABAD: Pakistan has launched a comprehensive economic strategy, simultaneously advancing energy sector reforms and global development partnerships.
The Privatisation Commission has invited expressions of interest for the privatisation of the country’s three major power distribution companies—FESCO, GEPCO and IESCO—a move that is being hailed as a major step towards improving efficiency and reducing financial pressure in the energy sector.
In line with government policy, the new reforms are introducing a performance-based dividend system, under which private investors will not only gain managerial control but will also be able to use the infrastructure more efficiently.
According to energy experts, Pakistan’s power sector has long been plagued by line losses, financial deficits and management problems, making reforms inevitable.
Meanwhile, internationally, the Asian Infrastructure Investment Bank has announced further expansion of its ongoing cooperation with Pakistan. According to the organisation, the N-5 (N-5 National Highway Pakistan) project is of key importance for the economic integration of the region.
This project will be completed in accordance with the principles of modern, environmentally friendly and sustainable infrastructure, which is expected to not only improve the transport system but also increase trade activities.
Pakistan has also recently issued a $250 million Panda Bond in the Chinese financial market, which is being considered a positive development for the country’s international financial reputation.
According to the government, all these steps are being taken to make Pakistan’s economy more stable, investor-friendly and compatible with the global financial system.
