Pakistan Moves Ahead with Privatization of FESCO, GEPCO and IESCO Under IMF Reform Plan

• EOIs invited for three major electricity distribution companies
• Investors offered 51% to 100% ownership and management control
• Reform linked to IMF-supported energy sector restructuring
• Transparent and competitive bidding process announced
• Aim to improve efficiency and service delivery, and reduce losses

ISLAMABAD: The government of Pakistan has resumed the process of privatising the country’s three largest and relatively profitable power distribution companies, pushing forward its long-pending energy sector reform agenda.

The Privatisation Commission on Tuesday invited expressions of interest (EOIs) from local and international investors for Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO) and Islamabad Electric Supply Company (IESCO).

The three entities are among the 11 distribution companies in the country that were established after the restructuring of WAPDA in 1998. These companies have always been considered suitable for privatisation due to their relatively good performance, high revenue collection and large urban and industrial areas.

According to an official announcement, investors can be given full management control with a stake ranging from 51 per cent to 100 per cent in these companies. The move is not just about selling assets but also about modernising, making the entire power distribution system efficient, effective and financially sustainable.

The Privatisation Commission has made it clear that the entire process will be transparent, competitive and in line with international standards. It has been made mandatory for each company to submit separate applications, while the last dates for applications have been set between July and September 2026.

According to officials, both local and foreign investors will be allowed to participate in the process. Investors will be able to participate in a single company individually or in the form of a consortium, provided that they meet the prescribed eligibility criteria.

This development comes at a time when Pakistan’s power sector is facing severe financial pressure, circular debt and line losses. The government says that privatisation will not only reduce the financial burden but will also significantly improve service delivery.

Moreover, this initiative is also part of the International Monetary Fund (IMF) Structural Reform Programme, under which Pakistan has to achieve the goals of improving efficiency in the energy sector, reducing subsidies and increasing private sector participation.

According to energy experts, if this process is completed in a transparent and effective manner, a major structural change can begin in Pakistan’s power sector, the effects of which will directly reach the economy, investment and consumers.

The Privatisation Commission has further said that an online investor briefing will also be held in which detailed light will be shed on the proposed business model, transaction structure and regulatory framework.