The Government of Sindh has decided to appoint a Transaction Advisor to oversee the transfer of ownership of two Sindh-based Power Distribution Companies — Hyderabad Electric Supply Company (HESCO) and Sukkur Electric Supply Company (SEPCO) — to the provincial government under a long-term concessional model, Business Recorder reported, citing sources.
According to the news report, the decision was communicated to the Power Division in response to a letter from Secretary Power Division Dr. Fakhre Alam Irfan. In January 2025, Prime Minister Shehbaz Sharif had instructed the Power Division to simultaneously explore both provincialisation and privatisation of Discos, ensuring that the transactions were completed as per commitments made to development partners.
The prime minister directed that ownership and control of Discos be transferred from the federal government to the provinces, with a roadmap and timeline prepared for his review.
Simultaneously, the Power Division was tasked with advancing privatisation of the first-phase Discos — Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO), and Gujranwala Electric Power Company (GEPCO). The division was expected to complete all necessary conditions precedent by January 31, 2025.
Sources confirmed that the Power Division has shared an updated status regarding the privatisation of three Discos and the long-term concessional model for HESCO and SEPCO. “Actions assigned to the Power Division with respect to Discos are almost on track, and this information has been shared with the visiting IMF Review Mission,” said an official on condition of anonymity.
On June 18, 2025, Privatisation Commission (PC) Board formally approved initiating the appointment of Financial Advisers to enhance private sector participation in HESCO, SEPCO, Peshawar Electric Supply Company (PESCO), and Hazara Electric Supply Company (HAZECO).
On September 22, 2025, Sindh government reviewed the provincialisation of HESCO and SEPCO and approved the appointment of a Transaction Advisor to manage the ownership transfer or concessional model, following due diligence.
Sources added that the Khyber Pakhtunkhwa government is also considering options for taking ownership of PESCO and HAZECO. The Privatisation Commission has received updates from the Power Division on the implementation of conditions precedent, including recognition of off-balance-sheet liabilities according to financial and corporate reporting requirements.
