The privatisation of three major electricity distribution companies—Islamabad Electric Supply Company (Iesco), Faisalabad Electric Supply Company (Fesco), and Gujranwala Electric Power Company (Gepco)—is expected to be completed by December 2025, according to the Power Division.
In a meeting of the National Assembly Standing Committee on Economic Affairs, chaired by Muhammad Atif Khan, Additional Secretary of the Power Division, Mehfooz Bhatti, stated that the process is in its final stages.Â
According to media reports, the due diligence of these companies is nearly complete, and a financial advisor has already been appointed. The Privatisation Commission is now focusing on finalising the financial structure and plans to invite Expressions of Interest (EOIs) and agree on the sale terms by December.
The committee raised concerns regarding the government’s approach to privatisation, noting that focusing only on the most efficient Discos for privatisation could leave chronically underperforming ones behind, exacerbating operational challenges. Despite these concerns, the committee members unanimously agreed that the government should continue with the process.
While discussing staffing issues, it was revealed that despite privatisation plans, some Discos, particularly in remote areas, are struggling with severe staffing shortages. MNA Sher Ali Arbab stated that while 80,000 positions exist, only 20,000 to 25,000 vacancies are approved for hiring. This has led to difficulties in addressing public complaints and operational challenges.
The committee was also informed that Pakistan’s power sector has an installed capacity of 39,952 MW, with 46% of this from clean energy and 54% from fossil fuels. The country is currently generating surplus electricity, amounting to 7,000-8,000 MW, but continues to incur financial losses due to capacity payments for unused power.
Furthermore, the committee expressed concerns about the inequitable distribution of development funds in the proposed federal budget for 2025-26, particularly highlighting the disparity in allocations for Khyber Pakhtunkhwa compared to other provinces. Despite KP having a larger population, it was allotted fewer development projects than other regions. The Economic Affairs Division (EAD) is pursuing legal actions to address these concerns, with hearings scheduled for September 2025.
