Three DISCOs privatisation EoIs likely delayed to September as investors seek tariff clarity

The Privatisation Commission board is expected to consider delaying the issuance of Expressions of Interest (EoIs) for the privatisation of three power distribution companies to September 2026, according to a news report. 

The move follows a high-level meeting at the Ministry of Privatisation chaired by Adviser to the Prime Minister on Privatisation Muhammad Ali, where progress and issues related to the proposed sell-off were reviewed.

In the first phase, the government plans to privatise Islamabad Electric Supply Company, Gujranwala Electric Power Company and Faisalabad Electric Supply Company.

Earlier, the Power Division and Privatisation Division had committed to issuing EoIs in April 2026 in line with discussions with the International Monetary Fund. 

However, officials now say the process has been deferred to September due to multiple factors, with the original plan to complete transactions within the current fiscal year no longer on track.

According to sources, potential investors have raised concerns over the tariff framework, particularly the continuation of a uniform tariff regime. Some investors have also suggested introducing a dollar-indexed tariff mechanism.

Officials said the Privatisation Division is working to structure the transactions in a way that remains attractive to investors while ensuring consumer protection.

Pakistan is also planning to send a delegation to Türkiye to study its model for privatising distribution companies, with a focus on reducing losses and improving operational efficiency.

In the second phase, the government intends to offer Lahore Electric Supply Company, Multan Electric Power Company and Hazara Electric Supply Company for privatisation.

The board is also expected to review the overall privatisation programme and approve the transaction structure and restructuring plan of Zarai Taraqiati Bank Limited.