The Privatization Commission is set to invite expressions of interest next month (May) for the sale of stakes in four state-owned enterprises (SOEs), as the government accelerates its divestment drive under an economic reform program linked to the International Monetary Fund (IMF), officials said.
According to officials familiar with the process, privatization efforts involving three electricity distribution companies and a state-owned bank have gained momentum. The commission plans to invite bids from investors for stakes in Islamabad Electric Supply Company (IESCO), Gujranwala Electric Power Company (GEPCO), Faisalabad Electric Supply Company (FESCO), and the Zarai Taraqiati Bank Limited.
In a second phase, the government intends to sell off additional power distribution companies, including Hyderabad Electric Supply Company and Sukkur Electric Power Company.
Pakistan’s power sector has long weighed on public finances, with subsidies exceeding Rs. 1.2 trillion in fiscal year 2025. Persistent inefficiencies, including transmission and distribution losses and electricity theft, have kept losses around 20%, undermining the financial viability of distribution companies.
As part of pre-privatization reforms, the government has restructured governance at distribution companies, filling about 90% of board positions with private-sector professionals in an effort to improve transparency and operational efficiency.
Officials said Pakistan is actively seeking foreign investment, particularly from the Middle East and Turkiye, to participate in the bidding process. Despite progress, the privatization drive faces challenges, including resistance from certain political parties and employee unions, the analysts noted.