ISLAMABAD: The government is accelerating efforts to privatize three power Distribution Companies (DISCOs)—Islamabad Electric Supply Company (IESCO), Gujranwala Electric Power Company (GEPCO), and Faisalabad Electric Supply Company (FESCO)—with the goal of completing the process by the end of 2025.
According to Minister for Power Sardar Awais Ahmad Khan Leghari, the Financial Advisor (FA) will structure the transaction based on completed assignments, with final approval sought from the Cabinet Committee on Privatisation (CCoP) before the transaction enters the market.
The Ministry of Privatisation, in collaboration with the Power Division and the World Bank, has finalized the Request for Proposal (RFP) for the hiring of an FA to facilitate private sector participation in these DISCOs. The plan, shared with pre-qualified Financial Advisors in August 2024, is now in the final stages of execution.
Prime Minister Shehbaz Sharif recently chaired a meeting on December 27, 2024, to review DISCOs’ performance and the progress of their privatization. The World Bank has provided a comprehensive report on the proposed privatization, which has been circulated among stakeholders, including the Privatisation Commission.
The report highlights specific tasks to be completed by January 31, 2025, involving the Power Division, DISCOs, NEPRA, and CPPA-G. The Financial Advisor will conduct due diligence on these tasks and recommend any necessary adjustments before finalizing the transaction structure.
The Executive Committee of the Special Investment Facilitation Council (SIFC) has instructed the Power Division to expedite the completion of nine prior actions aligned with World Bank deliverables by January 2025. Additionally, meticulous timelines and milestones for the privatization process are to be presented to the SIFC by January 15, 2025.
Key considerations, including investor qualification criteria and the Terms of Reference (ToRs) for appointing Human Resource (HR) and communication firms, remain under review. Stakeholder feedback will shape the final criteria and strategy for bringing the DISCOs to market.
This privatization initiative marks a significant step toward enhancing the operational efficiency and financial sustainability of Pakistan’s power sector.
Story by Mushtaq Ghumman
