Board Approves Participation in Major Power Sector Deal
Sapphire Fibres Limited has formally entered the competition to acquire Faisalabad Electric Supply Company as Pakistan moves ahead with its power sector privatisation programme.
The listed company confirmed its participation in a notice submitted to the Pakistan Stock Exchange on Friday.
Sapphire Fibres said it had obtained the Request for Statement of Qualification issued by the Privatisation Commission for the proposed divestment of FESCO.
The company’s board of directors has approved participation in the transaction.
However, Sapphire Fibres stressed that it has not yet entered into any binding commitment.
Its participation remains subject to pre-qualification by the Privatisation Commission.
The transaction will also require all necessary corporate and regulatory approvals before the company can move forward.
Sapphire Fibres said it could form a consortium with other investors once the required approvals are obtained.
Nishat-Led Consortium Also Competing for FESCO
Sapphire Fibres entered the race only one day after a major consortium involving several Nishat Group companies announced its participation.
The seven-company consortium includes Nishat Chunian Power Limited, Pakgen Limited, Lalpir Limited, Nishat Power Limited, Nishat Mills Limited, Kohinoor Energy Limited and Pak Elektron Limited.
Pakgen Limited has been appointed as the lead member of that consortium.
It will represent the participating companies during the FESCO privatisation process.
Like Sapphire Fibres, the Nishat-led consortium has said its participation remains subject to pre-qualification and regulatory approvals.
The entry of major industrial and power sector companies has increased competition for one of Pakistan’s largest electricity distribution companies.
Sapphire Fibres already has significant exposure to Pakistan’s energy sector.
Last year, the company completed the acquisition of 50 percent stakes in UCH Power Private Limited and UCH-II Power Private Limited.
UCH Power operates a 586-megawatt gas-based power plant.
UCH-II operates another gas-based facility with generation capacity of approximately 404 megawatts.
Both power plants are located in Dera Murad Jamali, Balochistan.
The acquisitions strengthened Sapphire Fibres’ position beyond its traditional textile operations and increased its exposure to Pakistan’s power industry.
FESCO Part of Government’s Wider Privatisation Drive
FESCO is among the first electricity distribution companies selected for privatisation under the government’s wider energy sector reform programme.
Islamabad Electric Supply Company and Gujranwala Electric Power Company are also included in the initial phase.
The federal cabinet approved the outright privatisation of FESCO, IESCO and GEPCO in August 2024.
The government says greater private sector participation could improve efficiency, reduce operational losses and attract fresh investment into electricity distribution.
Pakistan’s electricity sector has struggled for years with financial losses, transmission and distribution problems, power theft and the growing circular debt burden.
The government is therefore seeking structural changes across generation, transmission and distribution companies.
FESCO is considered one of the more commercially attractive distribution companies because it serves a major industrial and agricultural region centred around Faisalabad.
Its consumer base includes residential customers as well as major textile, manufacturing and commercial businesses.
The deadline for submission of expressions of interest for FESCO was revised to August 7, 2026.
Sapphire Fibres’ entry means the privatisation process is now attracting interest from some of Pakistan’s largest industrial groups.
However, participation at this stage does not guarantee that any bidder will ultimately qualify or acquire the company.
The Privatisation Commission will first evaluate interested parties before allowing qualified investors to move into later stages of the bidding process.
Further details regarding consortium arrangements, financial bids and the final transaction structure are expected as the privatisation process advances.
