Pakistan picks consortium led by Dubai-based firm to advise on power sector privatization

Pakistani technicians of the Karachi Electric Corporation work on a high voltage line in Karachi on August 31, 2016. (AFP/File)
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Updated 12 February 2025
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Pakistan picks consortium led by Dubai-based firm to advise on power sector privatization

  • The consortium will help with the privatization of three power distribution companies in Pakistan
  • Pakistan has struggled with power sector challenges, leading to financial losses, revenue shortfalls

KARACHI: Pakistan has signed a financial advisory agreement with a consortium led by Dubai-based Alvarez & Marsal Middle East Limited to help privatize three major power distribution companies (DISCOs), the Privatization Commission said on Tuesday.

The agreement is part of the government’s broader privatization drive to reform the power sector that has been plagued by circular debt, operational inefficiencies and power theft.

The government has been working to divest state-run power companies as part of its wider economic reform agenda, recommended under its $7 billion loan program with the International Monetary Fund.

“This strategic initiative aligns with the government’s commitment to improving efficiency, reducing losses and ensuring long-term sustainability in the power distribution sector,” the Privatization Commission said in a statement.

Alvarez & Marsal Middle East Limited, a professional services firm specializing in business performance improvement and turnaround management, will provide financial advisory services for the privatization of Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO) and Islamabad Electric Supply Company (IESCO).

It will conduct due diligence, market analysis, investor outreach and transaction structuring to facilitate private sector participation in the bidding process.

Pakistan has long struggled with power sector challenges, with state-run distribution companies suffering massive financial losses due to inefficiencies, revenue shortfalls and delays in tariff adjustments.

The signing ceremony was attended by senior officials from the Privatization Commission and representatives of the A&M-led consortium.


Government hails joining Gaza peace board as ‘diplomatic success’ amid opposition criticism

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Government hails joining Gaza peace board as ‘diplomatic success’ amid opposition criticism

  • Ahsan Iqbal says Pakistan took the decision after consulting other Muslim nations
  • Opposition objects to joining Trump-chaired forum without parliamentary consensus

ISLAMABAD: Pakistan on Friday described its decision to join a newly formed international body aimed at supporting peace efforts in Gaza as a “diplomatic success,” dismissing opposition criticism that the move was taken without parliamentary consensus.

The Gaza Board of Peace brings together participating states and international stakeholders seeking to support dialogue, stability and peace-related initiatives linked to the conflict in the Palestinian enclave.

Prime Minister Shehbaz Sharif signed the forum’s charter a day earlier on the sidelines of the World Economic Forum’s annual meeting in Davos.

Opposition lawmakers objected to the decision in parliament, saying the government joined the initiative without taking them into confidence or disclosing its terms.

“If Pakistan had not gone to the Board of Peace today, these honorable members would have been making the same forceful speeches that Pakistan has been isolated, that no one is engaging with Pakistan and asking why Pakistan was not included in such a major peace initiative,” Federal Minister for Planning Ahsan Iqbal said in a parliamentary address.

“If Pakistan has been given center stage today, enabling us to contribute to peace in Palestine and Gaza alongside our brotherly Islamic countries, then this is a major diplomatic success for Pakistan, one that we should welcome rather than standing aside,” he added.

Iqbal said Islamabad had taken the decision after consulting other Muslim nations and described the forum as part of an international initiative aimed at ending bloodshed in Gaza.

He added that the initiative had been welcomed by Palestinians, even as Pakistan’s decision to pursue it with other nations faced criticism at home.

Representatives of 19 countries signed the charter on Thursday alongside US President Donald Trump, who addressed the gathering but offered few details about the body’s mandate, how it would operate or how it might pursue conflict resolution efforts.

Pakistan and seven other Muslim countries said in a joint statement on Wednesday that they had accepted Trump’s invitation to join the board, expressing hope that it could contribute to a permanent ceasefire in Gaza.

Chaired by Trump, the board is expected to include US Secretary of State Marco Rubio, Trump’s special envoy Steve Witkoff, former British prime minister Tony Blair and Trump’s son-in-law Jared Kushner.

Israel announced on Wednesday that Prime Minister Benjamin Netanyahu would also be a member of the board.