Privatisation Commission to offer GEPCO, FESCO to private sector in first phase

The Privatisation Commission has decided to privatise two power distribution companies (Discos), Gujranwala Electric Power Company (GEPCO) and Faisalabad Electric Supply Company (FESCO), as part of the first phase of its reform agenda. However, sources say there is still no clarity on the specific mode of privatisation.

According to a news report, the privatisation of Islamabad Electric Supply Company (IESCO), which had been under consideration, has been delayed for the time being. 

Letters of Interest (LoIs) for GEPCO and FESCO are expected to be issued by the end of this month, with the government aiming to complete the privatisation by the end of the current fiscal year. Financial advisers Alvarez & Marsal have already submitted a report outlining the restructuring plans and various options for the transaction structure.

Following consultations, the Privatisation Commission plans to seek approval from both the Privatisation Commission Board and the Cabinet Committee on Privatisation (CCoP) by the last week of January 2026. After CCoP approval, an Expression of Interest (EOI) is expected to be published by the end of the same month.

A Steering Committee, chaired by Deputy Prime Minister Ishaq Dar, has been formed to expedite the privatisation of the DISCOs. The committee, which includes key officials from the Power Division and the Privatisation Commission, will oversee the entire process. Its responsibilities include streamlining the privatisation timeline, developing a communication strategy to address stakeholder concerns, ensuring compliance with regulations, and submitting weekly progress reports to the Prime Minister.