ISLAMABAD: The federal government has approved the privatisation of 13 power sector entities, including nine power distribution companies (DISCOs) and four power generation companies (GENCOs) while this privatisation will be carried out in phases.
According to sources, the federal government has so far approved the privatisation of 13 power sector entities, nine DISCOS and four GENCOs. They said that commercial State Owned Enterprises (SOEs) to be privatised are named as Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), Hyderabad Electric Supply Company (HESCO), Islamabad Electric Supply Company (IESCO), Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO) Peshawar Electric Supply Company (PESCO), Sukkur Electric Power Company (SEPCO) and Hazara Electric Supply Company (HAZECO), Jamshoro Power Company Limited (GENCO-I), Central Power Generation Company Limited (GENCO-II), Northern Power Generation Company Limited (GENCO-III), and Lakhra Power Generation Company Limited (GENCO-IV).
They said the privatization will proceed in stages, with the first phase focusing on four DISCOs: FESCO, GEPCO, HESCO, and IESCO while the second phase will involve privatizing MEPCO, PESCO, and additional companies.
Sources said the government has also approved the restructuring of four Power Division entities, including the Quetta Electric Supply Company (QESCO), Tribal Electric Supply Company (TESCO), National Transmission and Despatch Company (NTDC) and National Engineering Services Pakistan (Pvt) Limited (NESPAK) has also been approved, said sources.
Comprehensive instructions have been issued regarding the privatization process, which aims to improve efficiency and attract private investment, said sources.
The privatisation process will be executed in phases. The first phase will focus on the privatization of four DISCOs: FESCO, GEPCO, HESCO, and IESCO. Subsequent phases will see the privatization of MEPCO, PESCO, and other companies. This strategic approach aims to ensure a smooth transition and minimize disruptions in the power supply.
Moreover, the government has also sanctioned the restructuring of four Power Division entities. These include Quetta Electric Supply Company (QESCO), Tribal Electric Supply Company (TESCO), National Transmission and Despatch Company (NTDC), and National Engineering Services Pakistan (Pvt) Limited (NESPAK). This restructuring is expected to further streamline operations and enhance the overall efficiency of the power sector.
In May, Prime Minister Shehbaz Sharif announced the government’s decision to privatize all state-owned enterprises, expanding the initial plans which were limited to privatizing only the loss-making state firms.
The Prime Minister emphasized that the government’s role is to foster a business and investment-friendly environment rather than directly engaging in business activities. This policy shift underscores the government’s commitment to leveraging private sector expertise and capital to revitalize the power sector and other state-owned enterprises.
It is pertinent to mention that the privatization and restructuring of these entities are anticipated to attract significant local and foreign investment, enhance operational efficiency, and ultimately provide more reliable and cost-effective power supply to consumers. The phased approach is designed to manage the transition effectively, ensuring that each phase builds on the success of the previous one.
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