Privatisation Commission starts process for appointing financial advisers for four power distribution firms, two generation plants

The Privatisation Commission has made progress in its reform agenda, initiating the process for appointing financial advisers for four power distribution companies and two power generation plants, while also receiving expressions of interest (EoIs) from eight parties seeking management control of Pakistan International Airlines Corporation Ltd (PIACL).

In a bid to accelerate privatisation and encourage private sector involvement, the commission aims to improve efficiency and ease the financial burden on the government. 

During its meeting on Thursday, the Privatisation Commission board approved the appointment of financial advisers for four power distribution companies: Hyderabad Electric Supply Company (Hesco), Sukkur Electric Power Company (Sepco), Peshawar Electric Supply Company (Pesco), and Hazara Electric Supply Company (Hazeco), which are set to be privatised in the second phase. 

Additionally, advisers will be appointed for two power generation plants, the 747MW Guddu Power Plant and the 525MW Nandipur Power Plant.

The board, chaired by Adviser to the Prime Minister on Privatisation Muhammad Ali, also reviewed progress on ongoing transactions. 

Financial advisers for three other distribution companies—Faisalabad Electric Supply Company (Fesco), Gujranwala Electric Power Company (Gepco), and Islamabad Electric Supply Company (Iesco)—have already been appointed, marking the first phase of privatisation.

Regarding PIACL, the deadline for submitting EoIs and statements of qualification (SOQs) for acquiring management control of the national carrier, with a stake ranging from 51 to 100 percent, expired on Thursday. This marks the second attempt to privatise the airline, after the submission deadline was extended from June 3. 

Eight parties expressed interest in managing the airline, with five submitting SOQs by the deadline. These include consortia comprising Lucky Cement Ltd, Hub Power Holdings Ltd, Kohat Cement Company Ltd, and Metro Ventures (Pvt) Ltd; Arif Habib Corporation Ltd and Fatima Fertiliser Company Ltd; City Schools (Pvt) Ltd and Lake City Holdings (Pvt) Ltd; Air Blue Ltd; and a consortium of Augment Securities & Investments (Pvt) Ltd and Serene Air (Pvt) Ltd, along with Bahria Foundation, Mega C&S Holding, and Equitas Capital LLC. Other interested parties include the AKD Group, Fauji Fertiliser Company Ltd, Habib Rafique Engineering (Pvt) Ltd, and Sardar Muhammad Ashraf D. Baloch (Pvt) Ltd.

The Privatisation Commission will now evaluate the submitted SOQs according to prequalification criteria. Prequalified parties will then gain access to the virtual data room for due diligence. 

The board also approved the audited financial statements for the Privatisation Commission for fiscal years 2022-23 and 2023-24 and the budget estimates for 2025-26 to support the commission’s operations and ongoing transactions.