Pakistan has stepped up preparations to privatise five state-owned power distribution companies, with financial advisers commencing sell-side due diligence in line with commitments under the International Monetary Fund programme, The News reported.
The Power Division is simultaneously working to complete the condition precedents required for the privatisation of Islamabad Electric Supply Company (Iesco), Faisalabad Electric Supply Company (Fesco), Gujranwala Electric Power Company (Gepco), Hyderabad Electric Supply Company (Hesco) and Sukkur Electric Power Company (Sepco).
A Financial Advisory Services Agreement for the privatisation of Iesco, Fesco and Gepco was signed on February 11, 2025, with a consortium led by Alvarez & Marsal Middle East Limited, enabling detailed due diligence and transaction structuring to proceed.
Separately, the government signed a Financial Advisory Services Agreement with Raiffeisen Investment Finansal Danismanlik Hizmetleri Limited Sirketi on November 27, 2025, for the privatisation of Hesco and Sepco.
Two utilities, Quetta Electric Supply Company and Tribal Areas Electric Supply Company, have been excluded from the current phase of privatisation due to security concerns and structural constraints, the documents noted.
Power sector reform remains a core component of Pakistan’s IMF-supported programme, which aims to restructure state-owned enterprises, strengthen governance and reduce fiscal pressures. The World Bank has also linked future energy-sector financing to measurable progress on reforms, increasing pressure on the government to deliver on its commitments.
