KARACHI: Pakistan’s push to privatize state-owned electricity distribution companies has drawn fresh interest from Saudi Arabian and Turkish investors, authorities said on Friday, as Islamabad seeks private capital and management to overhaul its debt-burdened power sector.
Pakistan is seeking to privatize three major electricity distributors, the Gujranwala Electric Power Company (GEPCO), Faisalabad Electric Supply Company (FESCO) and Islamabad Electric Supply Company (IESCO), in the first batch of a wider power-sector sell-off. Investors can acquire between 51 percent and 100 percent stakes along with management control.
The privatizations are aimed at bringing private-sector investment and management into a distribution system long plagued by electricity losses, weak recoveries and mounting circular debt. The program forms part of a broader government effort to reduce the state’s commercial footprint and reform loss-making public enterprises.
The Privatization Commission said on Friday it had received expressions of interest from 11 prospective investors for GEPCO, including Saudi Arabia’s Al Sharif Contracting and Commercial Development Company, three Turkish companies and several major Pakistani business groups.
“The strong response for GEPCO is indicative of investor confidence in the potential of Pakistan’s electricity distribution sector and in the Government’s commitment to a transparent, competitive and professionally managed process,” Muhammad Ali, adviser to the prime minister on privatization and chairman of the Privatization Commission, said in a statement.
The Turkish investors are Aktor Elektrik Enerji Yatırımları, Genvera Enerji and Cengiz Enerji, while Pakistani parties include Engro Energy, Sapphire Fibers and K-Electric.
Other local bids include groups involving Hub Power Holdings and Lucky Cement, Artistic Milliners and Fatima Group, and AKD Securities, Fast Cable and Mughal Steel Group.
The expressions of interest and statements of qualification will now be evaluated against prequalification criteria, according to the commission. Successful applicants will be invited to the next stage and given access to a virtual data room to conduct due diligence.
The government has also received expressions of interest from 12 prospective investors for FESCO, including three Turkish consortiums, a Chinese investor group and eight Pakistani business groups. The deadline for expressions of interest in IESCO, the third distributor in the first batch, is Sept. 7.
FESCO BID
JDW Sugar Mills, one of Pakistan’s largest sugar producers, said on Friday it had joined a ten-member consortium led by energy company Pakgen Limited to bid for a stake in FESCO.
JDW Group is headed by Jahangir Khan Tareen, a prominent Pakistani businessman and politician. JDW disclosed in a filing to the Pakistan Stock Exchange on Thursday that it had joined the Pakgen-led consortium seeking to participate in the FESCO privatization.
Other members include Nishat Mills Limited, Lalpir Limited, Nishat Power Limited, Nishat Chunian Power Limited, Kohinoor Energy Limited, Pak Elektron Limited, Deharki Sugar Mills and ATF Agri Sciences.
“In respect of the Transaction, the Company has resolved to join the proposed consortium comprising of the following members led by Pakgen Limited by amending the Statement of Qualification to participate in FESCO privatization,” JDW said in the filing.
JDW said it had not assumed any binding obligation in the transaction and its participation remained subject to prequalification by the Privatization Commission and required corporate and regulatory approvals.
BROADER PRIVATIZATION PUSH
The electricity distributor sales are part of Pakistan’s 2024-29 privatization program, which covers a range of state assets and enterprises as Islamabad seeks to reduce persistent losses and the fiscal burden of government-owned businesses.
The program gained momentum with the privatization of Pakistan International Airlines in December 2025 after successive governments had struggled for years to sell or restructure the debt-laden national carrier.
A consortium led by Arif Habib Corporation acquired a 75 percent stake in PIA for Rs135 billion ($482 million) in a televised auction, marking a major breakthrough for the government’s privatization drive.
The transaction followed a failed attempt in 2024, when Pakistan received only one bid for a 60 percent stake in PIA. The offer of Rs10 billion ($36 million at the time) was far below the government’s minimum price and was rejected.
Ahead of the successful sale, authorities restructured the airline and shifted much of its legacy debt and liabilities away from its core operations, helping make the business more attractive to potential buyers.
The privatization push has taken on added importance under Pakistan’s economic reform program backed by the International Monetary Fund, which has called for reforms to state-owned enterprises and the energy sector to reduce fiscal risks.
The government is now seeking to carry that momentum into electricity distribution, one of the most difficult areas of the country’s power sector, with the three Batch-I companies representing the first major test of investor appetite. The Privatization Commission has hired financial advisers to conduct due diligence, structure the transactions and attract credible private-sector participation in FESCO, GEPCO and IESCO.
