The government is advancing plans to privatize three major power distribution companies (DISCOs): Islamabad Electric Supply Company (IESCO), Gujranwala Electric Power Company (GEPCO), and Faisalabad Electric Supply Company (FESCO). The Cabinet Committee on Privatization (CCoP) is expected to approve the transaction structure before it proceeds to market.
According to Power Minister Sardar Awais Ahmad Khan Leghari, the privatization process for these DISCOs is expected to conclude by the end of this year. The World Bank has completed a report on the proposed privatization, which has been reviewed by the Privatization Commission and shared with stakeholders, including the Power Division.
The report outlines tasks for the Power Division, DISCOs, and NEPRA, with a deadline of January 31, 2025. The Financial Advisor will evaluate these tasks, recommend adjustments, and structure the transaction accordingly, subject to CCoP approval.
Investor eligibility and qualification criteria will also be assessed following market outreach. Terms of Reference (ToRs) for appointing Human Resource and communication firms are under review.
The Special Investment Facilitation Council (SIFC) has directed the Power Division to finalize nine prior actions approved by CCoP by January 31, 2025. The hiring of a Financial Advisor for the initial privatization phase is also being expedited, with timelines to be presented to SIFC by January 15, 2025.
During a meeting on December 27, 2024, Prime Minister Shehbaz Sharif expressed concerns about delays in appointing CEOs for the DISCOs and received updates on the privatization efforts.
The Ministry of Privatization has shared the finalized Request for Proposal (RFP) for hiring a Financial Advisor to facilitate private sector participation. The RFP, detailing the scope of work and evaluation criteria, was sent to pre-qualified advisors in August 2024, and the hiring process is underway.
