The Government of Pakistan has officially invited Expressions of Interest from local and international investors for the privatisation of three major electricity distribution companies including Faisalabad Electric Supply Company, Gujranwala Electric Power Company, and Islamabad Electric Supply Company.
The announcement was made by the Privatisation Commission as part of the government’s broader economic reform agenda aimed at improving efficiency, attracting investment, and modernising Pakistan’s energy sector.
Govt Offers Up to 100 Percent Shareholding
According to an official press release, investors will have the opportunity to acquire between 51 percent and 100 percent shareholding along with management control in each of the three electricity distribution companies.
The government stated that the privatisation process aims to improve operational performance, strengthen service delivery, and encourage sustainable growth within the power sector. Authorities believe private sector participation can help reduce losses and improve the financial health of distribution companies.
FESCO, GEPCO and IESCO Serve Over 14 Million Consumers
The three DISCOs collectively provide electricity to more than 14 million consumers across major industrial, commercial, and urban areas of Punjab and the Islamabad region.
FESCO operates in Faisalabad and surrounding districts, while GEPCO supplies electricity to Gujranwala and nearby regions. IESCO serves Islamabad and several adjoining areas.
These companies manage extensive electricity distribution networks and hold strategic importance in Pakistan’s energy infrastructure due to their large customer base and presence in key economic corridors.
Transparent and Investor Friendly Process Planned
The Privatisation Commission said the entire process will follow international best practices and will remain transparent, competitive, and investor friendly.
Interested investors can apply individually or form consortiums to participate in the bidding process. However, they must meet the qualification criteria mentioned in the Request for Statement of Qualification documents.
Officials clarified that investors must submit separate applications for each distribution company.
Submission Deadlines Announced
The government has also announced separate deadlines for submitting Expressions of Interest for each company.
Applications for FESCO must be submitted by July 7, 2026. The deadline for GEPCO applications is August 6, 2026, while investors interested in IESCO have until September 7, 2026, to submit their documents.
An online investor briefing session will also take place jointly by the Privatisation Commission and the financial adviser handling the transaction. The session will explain investment opportunities, transaction details, and procedural requirements for potential buyers.
Reforms Planned in Tariff and Business Structure
The government said it plans to engage with investors and stakeholders to improve the existing tariff structure, Multi Year Tariff regime, and overall business framework of DISCOs.
Authorities aim to introduce a performance and efficiency based return system that encourages better management and operational improvements. Officials also want private buyers to utilise existing infrastructure and customer networks to expand business opportunities within the power sector.
The reforms are expected to accelerate private sector participation and improve the reliability and efficiency of electricity supply services in Pakistan.
Govt Sees Privatisation as Key Energy Reform Step
The government considers the privatisation of electricity distribution companies a major step toward addressing long standing issues in the power sector, including financial losses, inefficiencies, and poor service delivery.
Officials believe private investment and modern management practices can help strengthen the sector, support fiscal sustainability, and contribute to long term economic stability.
The move also aligns with Pakistan’s wider economic reform strategy focused on attracting foreign investment and improving the performance of state owned enterprises.