Privatisation of FESCO, GEPCO, IESCO Moves Ahead as PC Board Clears Key

ISLAMABAD: The Privatisation Commission (PC) Board on Tuesday recommended approval of restructuring plans and schemes of arrangement for the first batch of electricity distribution companies (DISCOs), marking a major step towards the privatisation of FESCO, GEPCO and IESCO.

The recommendation was made during a meeting of the PC Board chaired by Adviser to the Prime Minister on Privatisation and Chairman of the Privatisation Commission, Muhammad Ali. The Board asked the Cabinet Committee on Privatisation (CCoP) to approve the restructuring plans and schemes of arrangement for the three state-owned power distribution companies.

According to the commission (PC), the restructuring plans have been prepared on the basis of the audited financial statements of Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO) and Islamabad Electric Supply Company (IESCO) for the period ending March 31, 2026.

The proposed framework is designed to maximise value for the Government of Pakistan while ensuring that the transactions remain commercially viable and attractive to prospective private-sector investors.

Under the proposed arrangement, the government will establish a wholly owned Special Purpose Vehicle (SPV), where selected assets and liabilities of the three DISCOs that are not part of the privatisation transactions will be transferred. The move is intended to create a cleaner and commercially viable transaction structure for potential buyers.

The Board was also informed that both domestic and international investors have shown strong interest in the privatisation of the first batch of DISCOs.

The deadlines for submission of Expressions of Interest (EOIs) have been fixed as August 7, 2026, for FESCO, August 21, 2026, for GEPCO, and September 7, 2026, for IESCO.

In another major decision, the Board approved the formation of two transaction committees to oversee the outsourcing process for Islamabad, Lahore and Karachi airports.

The meeting was informed that the Asian Development Bank (ADB) has already been appointed as financial adviser for the outsourcing of Islamabad International Airport, while the process for appointing financial advisers for Lahore and Karachi airports is currently underway.

The Board also approved the appointment of RSM Avais Hyder Liaquat Nauman, Chartered Accountants, to conduct transaction-specific audits for privatisation deals completed during FY2024-25 to FY2026-27.

It was noted that BDO Ebrahim & Co., Chartered Accountants, had already been selected through a competitive bidding process to conduct the annual financial audits of the Privatisation Commission for FY2025-26 to FY2027-28.

Reaffirming its commitment to transparency, the Board said the government's privatisation programme would continue to be implemented in a transparent, competitive and professionally managed manner aimed at improving efficiency, attracting private investment and maximising value for the government and the people of Pakistan