Pakistan Opens Three Major DISCOs for Privatization

Islamabad: (Web Desk) – The Government of Pakistan has formally invited Expressions of Interest (EOIs) from local and international investors for the privatisation of three major power distribution companies — Faisalabad Electric Supply Company, Gujranwala Electric Power Company and Islamabad Electric Supply Company.

According to a press release issued by the Privatisation Commission of Pakistan on Tuesday, investors will have the opportunity to acquire between 51 per cent and 100 per cent shareholding along with management control in each of the three electricity distribution companies (DISCOs).

The move is part of the government’s broader economic reform programme aimed at improving operational efficiency, strengthening service delivery, attracting domestic and foreign investment, and promoting sustainable growth in Pakistan’s power sector.

The three DISCOs collectively serve more than 14 million consumers across key industrial, commercial and urban centres of Punjab and the Islamabad region. Officials said the companies operate extensive electricity distribution networks and represent strategically important assets within the country’s energy sector.

The Privatisation Commission stated that the transaction process would be carried out in a transparent, competitive and investor-friendly manner in line with international best practices. Interested investors may participate individually or through consortium arrangements, subject to qualification criteria outlined in the Request for Statement of Qualification (RSOQ) documents.

Separate submissions will be required for each company. The deadlines announced by the commission are July 7, 2026 for FESCO, August 6, 2026 for GEPCO and September 7, 2026 for IESCO.

An online investor briefing will also be organised jointly by the Privatisation Commission and the financial adviser to explain the investment opportunities, transaction structure and procedural requirements.

The commission said the government considers the privatisation of power distribution companies a key step toward modernising the energy sector, reducing inefficiencies, encouraging private-sector participation and improving consumer services.

Officials further stated that consultations would be held with investors and stakeholders to refine the tariff structure, Multi-Year Tariff (MYT) regime, business model and framework for competitive suppliers in order to support performance-based returns and enable additional business opportunities for private buyers.

The government reiterated its commitment to providing a predictable investment environment supported by policy continuity, regulatory transparency and institutional reforms.