The privatization of the Islamabad Electric Supply Company (IESCO) has attracted strong interest from domestic and international investors, with the Privatization Commission on Monday announcing it has received 10 Expressions of Interest on the closing date for submission.
In a statement, the commission said investors had expressed interest in acquiring between 51% and 100% of IESCO’s shares along with management control. The development marks the latest advance in the government’s planned privatization of state-owned electricity distribution companies, part of broader efforts to improve the financial and operational performance of the power sector.
Three Turkish energy companies submitted expressions of interest for IESCO: Aktor Elektrik Enerji Yatırımları San. ve Tic. A.Ş., Genvera Enerji A.Ş. and Cengiz Enerji Sanayii ve Ticaret A.Ş. The Pakistani companies and consortia that have expressed interest are Engro Energy Ltd., Sapphire Fibers Ltd., Novatex Ltd. and Bestway Cement Ltd.
Two other major consortia that submitted expressions of interest are Artistic Milliners, comprising Lake City Holdings, Fatima Capital Ltd., Din Ventures (Pvt.) Ltd. and Fazal Cloth Mills Ltd, and Hub Power Holding Ltd., comprising Lucky Cement Ltd., Kohat Cement Ltd. and Metro Ventures (Pvt.) Ltd.
A consortium led by Hasnaat Brothers Construction Co. (Pvt.) Ltd., together with Dhilal Holding Group, Pak Steel, Bio-Labs (Pvt.) Ltd. and Farid Steel Casting (Pvt.) Ltd., also submitted an expression of interest.
The Privatization Commission said the participation of Turkish investors and leading Pakistani business groups reflected continued engagement with the transaction following domestic and international investor roadshows.
Evaluation process begins
The commission will now proceed to evaluating the expressions of interest and Statements of Qualification against approved prequalification criteria. Applicants meeting the requirements would be prequalified and invited to the next stage of the transaction, where they would receive access to a virtual data room to conduct detailed due diligence.
“This is an important milestone in the privatization of DISCOs,” said Adviser to the Prime Minister on Privatization Muhammad Ali, who also serves as chairman of the Privatisation Commission. He said the response to IESCO’s sale reflected investor interest in Pakistan’s electricity distribution sector and the government’s commitment to a transparent and competitive privatization process.
The government intends the transaction to improve operational efficiency, modernize distribution infrastructure, strengthen customer services and reduce distribution losses, according to the commission. The commission said the reforms also aim to support a more financially sustainable electricity sector and improve the reliability and affordability of power supply over time.
IESCO is one of three distribution companies included in the first batch of the government’s DISCO privatization program. The other two are Faisalabad Electric Supply Co. (FESCO), and Gujranwala Electric Power Co. (GEPCO).
The commission said 10 parties have already been prequalified for FESCO, while 11 expressions of interest have been received for GEPCO and are currently being evaluated for prequalification.
The government has been pursuing privatization and structural reforms in the power distribution sector as persistent distribution losses, weak recoveries and financial constraints have contributed to pressures on Pakistan’s electricity sector.
The Privatization Commission said it remains committed to an open, transparent and competitive process conducted in the public interest and aligned with the federal government’s broader power-sector reform agenda.