ISLAMABAD: Pakistan has invited Expressions of Interest (EOIs) from investors seeking to acquire 51 percent to 100 percent stakes in three state-owned electricity distribution companies, the privatization ministry said on Tuesday, as the government pushes to reduce inefficiencies by modernizing the energy sector.
The development comes after the government last week approved the privatization of Islamabad Electric Supply Company (IESCO), Gujranwala Electric Power Company (GEPCO) and Faisalabad Electric Supply Company (FESCO) and offered full management control to the buyers.
Pakistan has been pursuing power sector reforms under an International Monetary Fund-backed economic stabilization program aimed at reducing losses, improving recoveries, and tackling the chronic circular debt that has strained public finances for years.
“The Government of Pakistan, through the Privatization Commission, has formally invited Expressions of Interest (EOIs) from local and international investors for the privatization of three major electricity distribution companies (DISCOs),” the ministry said in a statement.
“The transaction offers investors the opportunity to acquire between 51 percent and 100 percent shareholding together with management control in each of the three distribution companies.”
FESCO, GEPCO, and IESCO serve more than 14 million consumers across Punjab and the Islamabad region. They operate electricity distribution networks spanning major industrial, commercial, and urban centers, making them key assets in Pakistan’s power sector.
The statement said interested investors could participate individually or as part of a consortium, subject to the qualification criteria set out in the Request for Statement of Qualification (RSOQ) documents.
It highlighted that separate submissions were required for each power distribution company. The deadlines for submissions were July 7 for FESCO, Aug. 6 for GEPCO, and Sep.7 for IESCO.
The privatization ministry said the move would contribute to fiscal sustainability, energy sector reforms, and long-term economic stability.
“The proposed reforms aim to create a performance and efficiency-based return regime while enabling private sector buyers to leverage DISCO infrastructure and customer base for additional business opportunities.”
The move follows the landmark privatization of Pakistan International Airlines in December, which officials called a breakthrough in the government’s long-stalled privatization drive.
Pakistan’s distribution companies have long struggled with high transmission losses, weak bill recovery and inefficiencies, all contributing to the country’s growing circular debt crisis.
Under the IMF program, the government plans to privatize other loss-making state-owned enterprises as part of broader structural reforms.
