PM Shehbaz Sharif orders faster privatization of Iesco, Gepco and Fesco with investor roadshows planned this month.
Key Takeaways
- Prime Minister Shehbaz Sharif has directed officials to speed up privatization of power distribution companies.
- The first phase includes Iesco, Gepco and Fesco, three commercially viable electricity distribution firms.
- Investors may be offered 51% to 100% ownership along with management control in each company.
- Roadshows are planned to attract local and foreign investors from Saudi Arabia, Turkiye and China.
- The government says transparency, regulation and consumer protection will be central to the process.
PM Pushes Faster Privatisation of Power Discos
Prime Minister Shehbaz Sharif has directed authorities to accelerate the privatisation of electricity distribution companies as the government moves ahead with its wider plan to sell selected state-owned enterprises. The latest direction was issued during a meeting on the ongoing privatisation programme, where officials briefed the prime minister on progress made in the power sector.
The government’s immediate focus is on three electricity distribution companies: Islamabad Electric Supply Company (Iesco), Gujranwala Electric Power Company (Gepco) and Faisalabad Electric Supply Company (Fesco). These companies have been placed in the first phase of the plan because they serve large consumer bases and are considered among the stronger commercial entities in Pakistan’s power distribution network.
Shehbaz Sharif told officials that the sale process should move quickly but must remain transparent. He also stressed the need for a strong regulatory structure after privatisation so that private investors operate under clear rules and consumers continue to receive reliable service.
Iesco, Gepco and Fesco Included in First Phase
According to the briefing, the government has already invited expressions of interest from investors for Iesco, Gepco and Fesco. The Cabinet Committee on Privatisation has also approved the transaction structure, clearing an important procedural step before formal bidding can move forward.
The three companies collectively serve more than 14 million consumers across major urban, industrial and commercial areas. Their service areas include parts of Punjab, the Islamabad region and some areas linked with Azad Jammu and Kashmir. Because of their relatively stronger consumer profile, these Discos are expected to attract more investor interest than weaker distribution companies.
Under the proposed structure, investors may be allowed to acquire between 51% and 100% ownership in each company. The sale would also include management control, meaning successful buyers would not only own shares but also run operations and make key business decisions under the regulatory framework.
Investor Roadshows Planned for This Month
Officials informed the meeting that investor roadshows will be held later this month to present the opportunity to local and foreign buyers. Potential investors from Saudi Arabia, Turkiye and China are expected to be among the groups approached as Pakistan seeks stronger private-sector participation in electricity distribution.
The Privatisation Commission had invited expressions of interest on May 19 for the sale of the three distribution companies. The deadline for submissions is expected during the first quarter of the next fiscal year, giving interested investors time to review company data, service areas, revenue potential and operational risks.
The roadshows will be important because they will help the government explain the transaction structure, regulatory environment and long-term investment case. For investors, the key questions will include tariff regulation, recovery levels, power losses, infrastructure needs, consumer growth and the level of protection available against future policy uncertainty.
Why the Government Wants to Sell Power Companies
The government has repeatedly said that loss-making state-owned enterprises place a heavy burden on public finances. Although Iesco, Gepco and Fesco are considered more commercially viable than many other entities, their sale is part of a broader policy to reduce the state’s role in running businesses and bring in private management where possible.
Pakistan’s power sector has long faced structural problems, including circular debt, weak recoveries, line losses, delayed payments and governance issues. Policymakers believe that private-sector management can improve efficiency, reduce losses and increase accountability if the transition is backed by strong regulation and clear performance targets.
However, privatisation alone will not solve all power-sector challenges. A successful transaction will also depend on how the government handles tariffs, subsidies, consumer protection, employee concerns and future investment requirements. Without careful oversight, consumers may fear higher bills or service gaps after private ownership.
Regulatory Oversight Will Be Key After Sale
The prime minister’s emphasis on regulation shows that the government understands the sensitivity of selling electricity distribution companies. Power distribution directly affects households, businesses, factories and public services, so any change in ownership must be accompanied by safeguards for service quality and fair billing practices.
An effective regulatory framework would need to define service standards, complaint mechanisms, investment obligations, loss-reduction targets and penalties for poor performance. It would also have to ensure that private owners do not focus only on profitable areas while neglecting difficult or high-loss service zones.
The meeting was attended by Deputy Prime Minister Ishaq Dar, Finance Minister Muhammad Aurangzeb, Power Minister Awais Leghari, Law Minister Azam Nazeer Tarar and other senior officials. Their participation reflects the financial, legal and policy importance of the transaction. If completed successfully, the sale of Iesco, Gepco and Fesco could become a major test case for further power-sector privatisation in Pakistan.
