ISLAMABAD: The government has invited investors to submit bids for the privatization of three major electricity distribution companies, marking a significant step toward restructuring the country’s power sector and reducing rising financial losses.
Under the plan, Pakistan intends to sell between 51% and 100% of the shares in Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), and Islamabad Electric Supply Company (IESCO). In addition, successful private investors will also receive full administrative control of these utilities as part of the privatization process.
Investment Timeline and Submission Deadlines Announced
According to official documents, the government has set clear deadlines for interested investors. The Expression of Interest (EoI) for FESCO must be submitted by July 07, 2026, while GEPCO applications are due by August 06, 2026. Meanwhile, bids for IESCO will close on September 07, 2026.
Moreover, authorities have made it mandatory for applicants to submit a non-refundable fee of Rs 1.4 million along with their proposals. A virtual briefing session will also be held on June 03, 2026, via Zoom to guide potential investors on the process and requirements.
Power Sector Reform Targets Debt Reduction
FESCO currently supplies electricity to around 5.7 million consumers across central Punjab. Similarly, GEPCO serves approximately 5.1 million consumers in Gujranwala, Sialkot, and nearby regions, while IESCO serves 4.1 million consumers in Islamabad, Rawalpindi, and Azad Kashmir.
The government views privatization as a key strategy to attract investment, improve efficiency, and reduce the growing circular debt in the energy sector. Furthermore, rising operational losses and mounting debt have been identified as major reasons behind the decision to offload these distribution companies.
