ISLAMABAD: The Power division has constituted a six-member committee to coordinate the ongoing privatization process of Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO), and Gujranwala Electric Power Company (GEPCO).
According to an official notification from the Power Division, Muhammad Khalid Khan, Joint Secretary (CAD), Power Division, has been appointed as the convener of the committee. Other members include Ghulam Rasool Anjum, Joint Secretary (P), Power Division; Kamran Farooq Ansari, Director General (I&T/P&U), Privatisation Commission; Abdul Basit Abbasi, Consultant, Privatisation Commission; Anton Avajansky, Managing Director, Alvarez & Marsal; and Alexander Sivolobov, Senior Director, Alvarez & Marsal.Â
The notification states that the committee is authorized to co-opt any additional members if required, particularly from the Finance Division (FD), Pakistan Power Management Company (PPMC), Central Power Purchasing Agency (CPPAG), and respective DISCOs.
The newly formed committee has been assigned several key responsibilities. It will ensure coordination among stakeholders, review the weekly progress of the due diligence process, and facilitate the financial advisor in collecting and compiling information from DISCOs and relevant stakeholders. Additionally, it will work on resolving implementation issues related to the privatization project and escalate concerns to the Project Oversight Committee.Â
The committee is also tasked with addressing operational and tactical challenges that may arise during the privatization process.
In a letter dated February 13, 2025, the Privatisation Commission directed the Chief Executive Officers (CEOs) of FESCO, GEPCO, and IESCO to comply with specific conditions during the privatization process.Â
The Commission, established under the Privatisation Commission Ordinance, 2000, is responsible for implementing the federal government’s privatization policies. The federal cabinet had decided on August 13, 2024, to include FESCO, GEPCO, and IESCO in Phase-I of the Privatisation Programme (2024-29). A consortium led by Alvarez & Marsal Middle East Limited, Dubai, UAE has been appointed as the Financial Adviser to facilitate private sector participation in these DISCOs.
To ensure a smooth transition and prevent financial mismanagement, the Privatisation Commission has imposed several restrictions on DISCOs. No new appointments will be allowed, except for filling vacancies due to resignations or retirements, without prior approval from the Privatisation Commission. Similarly, no promotions or new incentives for employees, except those already entitled before the directive’s issuance, can be granted without prior approval. Additionally, no new agreements or undertakings that create financial or legal obligations can be entered into without the Commission’s consent.
All DISCOs are required to maintain up-to-date business records and books of accounts. Actions leading to asset loss or wastage are strictly prohibited. Any new liabilities, other than in the ordinary course of business, will require prior written approval. Furthermore, no information shall be shared with any person that might benefit a third party or potential buyer. The directive also forbids any actions that could lead to industrial unrest. Any major administrative, financial, or policy decisions that could have a material impact on business operations will require prior approval from the Privatisation Commission.
 The CEOs of FESCO, GEPCO, and IESCO have been instructed to circulate these directives among their respective administrative units to ensure compliance. A copy of the implementation report must be submitted to the Privatisation Commission for record-keeping purposes.
As per the Privatisation Commission Ordinance, 2000 (amended up to September 18, 2024), the Commission holds several key responsibilities. It oversees privatization-related activities, including restructuring and deregulation. It also makes operational decisions on regulatory matters such as licensing and tariff rules, issues directives to state-owned enterprises (SOEs) included in the privatization program, and ensures compliance with all directives to prevent financial mismanagement. The Commission is also responsible for preventing any actions that may lead to industrial disruptions.
It is pertinent to mention that the newly formed six-member committee is expected to play a crucial role in facilitating the privatization process, ensuring transparency, and addressing any challenges faced during the transition. The committee will also closely monitor the fact-finding report, which is due to be presented to the cabinet in March 2025.
