KARACHI: Pakistan is planning to privatize three power distribution companies (DISCOs) in the first quarter of 2027, the country’s Privatization Commission chairman said on Saturday.

Pakistan’s government has been attempting to privatize the loss-making entities to raise funds and reform state-owned enterprises as envisaged under a $7 billion International Monetary Fund (IMF) program. DISCOs, which handle billing, recoveries and grid maintenance, have long suffered from corruption and political interference.

Privatization Commission Chairman Muhammad Ali said that due diligence for the three companies, including Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO) and Islamabad Electric Supply Company (IESCO), was already underway, while potential investors had requested additional time to assess the complex transactions.

“The government had initially planned to hold bidding in December, but the process might be delayed slightly, with the target now set for the first quarter of next year,” the Privatization Commission quoted Ali as telling NNI news agency.

The government has also started work on the privatization of Hyderabad and Sukkur power distribution companies, with their transactions expected to be completed in the second quarter of 2027, according to the official.

Lahore, Multan, Peshawar and Hazara distribution companies are also part of the privatization program, with authorities aiming to complete their privatization in the second half of 2027.

Ali described power sector reform as a “national security issue,” saying high energy costs were undermining industrial competitiveness, exports and economic growth.

“Pakistan needed to reduce electricity tariffs and introduce competition in the power supply market to prevent consumers and industries from shifting away from the national grid,” he was quoted as saying.

DISCOs would be required to improve their performance through smart metering, technology adoption, reduction in electricity losses, better recovery, uninterrupted power supply and improved load management, according to the official.

The Privatization Commission has prepared a comprehensive reform paper covering tariff structures, investment plans, business activities and the introduction of a competitive electricity market.

“The government intended to share the reform proposals with the public by mid-November after consultations with relevant institutions, the Prime Minister and the Steering Committee,” Ali said.

The government is also considering privatization of Pakistan State Oil (PSO), Sui Southern Gas Company and Sui Northern Gas Pipelines Limited, according to the Privatization Commission chairman.

He said the privatization program was aimed at improving efficiency, attracting investment and addressing “structural challenges in key sectors of the economy.”