Pakistan’s electricity distribution company privatization programme has reached a significant stage after 12 investor consortiums submitted Expressions of Interest (EOIs) for Faisalabad Electric Supply Company (FESCO), reflecting participation from both domestic and international business groups.
Adviser to the Prime Minister on Privatisation and Chairman of the Privatisation Commission, Muhammad Ali, announced on Friday that 12 investor consortiums, representing more than 12 individual companies and business groups, had formally submitted EOIs for FESCO. The participating investors include three consortiums from Turkey, one investor group from China, and eight major Pakistani business groups taking part either independently or through joint consortium arrangements. The response comes as the government continues efforts to attract strategic investors into Pakistan’s electricity distribution sector.
According to Muhammad Ali, the level of participation reflects increasing investor confidence in the country’s power sector reform agenda. The submission of EOIs follows a six-month investor engagement programme conducted by the Privatisation Commission. The commission began its investor outreach in January and subsequently arranged several presentations and consultative sessions aimed at providing potential investors with information about the transaction, addressing concerns and building confidence in the privatization process.
The FESCO transaction is part of a broader government effort to restructure and privatize electricity distribution companies across Pakistan. The proposed post-privatization framework is expected to focus on improving the performance of the power distribution system while working toward lower electricity tariffs for domestic, commercial and industrial consumers. The initiative also seeks to introduce greater competition in the power supply business, upgrade and digitize grid infrastructure, and improve the availability of affordable and efficient electricity.
The government’s plans place particular emphasis on the modernization of distribution infrastructure. Digitization of the grid is expected to form part of the broader transformation of the electricity distribution system, alongside efforts to improve operational efficiency and service delivery. The privatization process is therefore being positioned not only as a change in ownership but also as part of wider reforms aimed at addressing long-standing challenges within the power sector.
With the EOI submission stage for FESCO now completed, the Privatisation Commission and other relevant authorities will move toward due diligence involving the shortlisted investors. This stage will allow the authorities to assess the participating parties before the transaction proceeds further. The process is expected to determine which investors meet the required criteria and can advance to subsequent stages of the privatization exercise.
Meanwhile, preparations for the privatization of other electricity distribution companies are also moving forward. The deadline for submitting EOIs for Gujranwala Electric Power Company (GEPCO) is expected within the next two weeks. For Islamabad Electric Supply Company (IESCO), the EOI submission deadline has been set for September 7.
Preliminary work and transaction structuring for Hyderabad Electric Supply Company (HESCO) and Sukkur Electric Power Company (SEPCO) have also officially commenced. The simultaneous progress on multiple DISCO transactions indicates that the government is pursuing a wider restructuring programme rather than limiting the initiative to a single electricity distribution company.
Officials have expressed optimism that the strong response to the FESCO process will help maintain momentum in the privatization programme. They have also described the development as an important step toward advancing reforms in Pakistan’s power distribution sector.
The participation of investors from Turkey and China alongside major Pakistani business groups provides a broad investor base for the FESCO transaction. As the process moves into due diligence, the Privatisation Commission will continue working with relevant authorities and shortlisted investors to advance the transaction while maintaining the broader objectives of improving electricity distribution, modernizing infrastructure and strengthening the efficiency of Pakistan’s power sector.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.