KARACHI: Pakistan has shortlisted 10 prospective buyers for its Islamabad electricity distributor, the Privatization Commission said this week, advancing a planned sale intended to bring private investment and management into the country’s troubled power sector.

Islamabad Electric Supply Company (IESCO) is among three distributors selected for the first phase of privatization, alongside companies serving Faisalabad and Gujranwala.

Pakistan is offering investors stakes of between 51 percent and 100 percent, together with management control, as part of an IMF-backed effort to reform state-owned enterprises.

The same three Turkish companies and seven Pakistani parties submitted expressions of interest in IESCO last month. Their prequalification moves the transaction beyond initial interest, allowing the prospective buyers to examine the company’s financial and operational records before deciding whether to bid.

“The Board approved the prequalification of 10 Interested Parties (IPs) for IESCO’s privatization, reflecting strong participation from domestic and international investors,” the commission said in a statement following its 260th board meeting on Thursday.

The Turkish companies are Aktor Elektrik Enerji Yatirimlari, Genvera Enerji and Cengiz Enerji.

The Pakistani parties include Engro Energy, Sapphire Fibers, Novatex and Bestway Cement, along with consortia led by Artistic Milliners, Hub Power Holding and Hasnaat Brothers Construction.

The Hub Power Holding consortium includes Lucky Cement, Kohat Cement and Metro Ventures. The Artistic Milliners consortium includes Lake City Holdings, Fatima Capital, Din Ventures and Fazal Cloth Mills.

The shortlisted parties will receive access to a virtual data room to conduct detailed due diligence, according to the statement. It did not announce a bidding date.

Pakistan’s electricity distribution reforms aim to address losses, weak bill recovery and mounting debt in the power sector. The government argues that private investment and management can improve efficiency and service delivery while reducing the financial burden on the state.

The board, chaired by Muhammad Ali, the prime minister’s adviser on privatization, also approved additional consortium members for Artistic Milliners’ participation in the Faisalabad Electric Supply Company transaction.

Separately, it approved changes to the transaction structure and restructuring plan for Zarai Taraqiati Bank, a state-owned agricultural lender. The commission said the revisions followed Prime Minister Shehbaz Sharif’s directions to preserve the bank’s focus on financing agriculture and farmers after privatization.

For State Life Insurance Corporation of Pakistan, the board approved a Deutsche Bank-led consortium as the top-ranked candidate for appointment as financial adviser.

A negotiation committee will finalize the advisory services agreement with the consortium. The decision concerns preparation for State Life’s privatization and does not constitute a sale of the insurer.

Pakistan is pursuing privatization and restructuring under reforms agreed with the International Monetary Fund to reduce losses and repeated government bailouts, attract investment and improve public services. The government sold a 75 percent stake in Pakistan International Airlines to an Arif Habib-led consortium in December 2025 and is also seeking private operators to run airports in Islamabad, Karachi and Lahore under long-term concessions.