The Government of Pakistan, through the Privatization Commission, has formally invited Expressions of Interest from local and international investors for the privatization of three major electricity distribution companies (DISCOs): Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), and Islamabad Electric Supply Company (IESCO).
The transaction offers investors the opportunity to acquire between 51% and 100% shareholding, together with management control in each of the three distribution companies. The initiative forms part of the government’s broader economic reform agenda aimed at improving efficiency, strengthening service delivery, attracting foreign and domestic investment, and promoting sustainable growth in Pakistan’s power sector.
FESCO, GEPCO and IESCO collectively serve more than 14 million consumers across major industrial, commercial and urban centers of Punjab and the Islamabad region. These entities operate extensive electricity distribution networks covering key economic corridors and represent strategically important assets within Pakistan’s energy landscape.
The Privatization Commission stated that the process is being undertaken in a transparent, competitive and investor-friendly manner in accordance with international best practices. Interested parties may participate individually or as part of a consortium, subject to the qualification criteria outlined in the Request for Statement of Qualification (RSOQ) documents.
According to the Expressions of Interest notice, separate submissions are required for each DISCO. The deadlines for submission are:
– FESCO: July 7, 2026
– GEPCO: Aug. 6, 2026
– IESCO: Sept. 7, 2026
The Privatization Commission and the Financial Adviser are also planning to conduct a joint online investor briefing to highlight investment opportunities, transaction structure and procedural requirements for interested investors.
The Government of Pakistan views the privatization of DISCOs as a critical step toward modernizing the energy sector, reducing inefficiencies, encouraging private-sector participation and enhancing consumer service standards. The initiative strives to contribute positively to fiscal sustainability, energy sector reforms and long-term economic stability.
The Privatization Commission will engage with potential investors and power sector stakeholders to refine the existing DISCO tariff structure, MYT regime, business model, and framework for competitive suppliers. The proposed reforms aim to create a performance and efficiency based return regime while enabling private sector buyers to leverage DISCO infrastructure and customer base for additional business opportunities. These measures are expected to support faster and more effective private sector participation in Pakistan’s power supply business.
The Privatization Commission emphasizes that Pakistan remains committed to creating a predictable and enabling investment environment supported by policy continuity, regulatory transparency and institutional reforms.