Pakistan launches sale of FESCO, GEPCO and IESCO

ISLAMABAD:Pakistan has invited Expressions of Interest through the Privatisation Commission for strategic sale of FESCO, GEPCO and IESCO, offering 51 to 100 percent stakes with management control to investors under a broader reform drive in the power distribution sector.

Under the transaction framework, investors will be offered between 51 percent and 100 percent shareholding along with full management control in each company. The process covers FESCO, GEPCO and IESCO, three of the country’s largest power distribution utilities.

Collectively, the three DISCOs serve more than 14 million consumers across major industrial, commercial and urban hubs of Punjab and Islamabad, operating extensive transmission and distribution networks that are considered critical to Pakistan’s energy infrastructure.

According to the Privatisation Commission, the process will be carried out in a transparent, competitive and investor-friendly manner aligned with international best practices. Interested parties may submit bids individually for each DISCO or as part of a consortium, subject to qualification requirements outlined in the official documents.

The EOI schedule sets separate deadlines for each entity, with FESCO submissions due on 7 July 2026, GEPCO on 6 August 2026, and IESCO on 7 September 2026. The staggered timeline is designed to ensure structured evaluation and smooth transaction execution.

An online investor briefing session will be held jointly by the Privatisation Commission and its financial advisers to outline investment opportunities, transaction structure, regulatory framework and procedural requirements for prospective investors.

Industry sources said that the Commission will also engage stakeholders to refine the tariff mechanism, multi-year tariff regime, business model and competitive supply framework, aimed at shifting the sector towards a performance-based return structure and enabling private sector efficiency gains.

The government views the privatisation of DISCOs as a key pillar of broader energy sector reforms aimed at improving operational efficiency, reducing losses, attracting investment and enhancing service delivery standards for consumers, said sources.

The initiative is also expected to support fiscal sustainability and long-term economic stability as Pakistan continues efforts to modernise its power sector and strengthen investor confidence through policy continuity and regulatory transparency, they added.