KARACHI: Pakistan’s Privatization Commission said on Monday that three Turkish companies and seven local ones had formally submitted expressions of interest to acquire stakes in the Islamabad Electric Supply Company (IESCO) power distributor.

IESCO is one of three major power distribution companies that Pakistan is seeking to privatize in the first phase of a broader power-sector sell-off. Islamabad is offering investors stakes ranging from 51 percent to 100 percent and management control in the distributors.

Pakistan has said it wants to bring private sector investment and management into a power distribution system that has suffered electricity losses, poor recoveries and mounting circular debt. Islamabad’s broader attempt to privatize state-owned enterprises is recommended by the International Monetary Fund (IMF) under a $7 billion loan program.

The Privatization Commission announced that last month it had extended the deadline for prospective buyers to submit expressions of interest (EOIs) for IESCO’s privatization till Sept. 21.

“Today, on the closing date for submission of Expressions of Interest (EOIs), the Commission received ten (10) EOIs from prospective investors seeking to acquire 51 percent to 100 percent shareholding in IESCO together with management control,” the commission said in a statement.

The energy sector companies from Türkiye include Aktor Elektrik Enerji Yatırımları San. ve Tic. A.Ş., Genvera Enerji A.Ş. and Cengiz Enerji Sanayii ve Ticaret A.Ş.

The seven local bidders include Engro Energy Limited, Artistic Milliners (Private) Limited Consortium, the ⁠Hub Power Holding Limited Consortium, Sapphire Fibers Limited, Novatex Limited, Bestway Cement Limited and Hasnaat Brothers Construction Co. (Pvt) Limited Consortium.

Statements of Qualification (SOQs) and the EOIs submitted by the interested parties will next be evaluated against the approved prequalification criteria, the commission said.

Applicants meeting the prescribed requirements will be prequalified and invited to the next stage of the transaction, where they will be granted access to the Virtual Data Room (VDR) to undertake detailed buy-side due diligence.

The commission mentioned that 10 interested parties have been prequalified to bid for the Faisalabad Electric Supply Company (FESCO) while 11 EOIs have been received for the privatization of Gujranwala Electric Supply Company (GEPCO), the other two power distributors which the government wants to privatize with IESCO.

The government’s privatization move gathered steam in December last year after it privatized former national flag carrier PIA. A consortium led by the Arif Habib Corporation acquired a 75 percent stake in the airline for Rs135 billion ($482 million) after a competitive bidding process that valued the carrier at Rs180 billion ($643 million).

Pakistan hopes to hand over its SOEs that have caused billions in losses over the years and required frequent financial bailouts to the private sector for better management and service delivery.