The process of DISCO privatization in Pakistan has gained momentum after investors from China, Qatar, Saudi Arabia, and Türkiye expressed interest in acquiring stakes in the country’s electricity distribution companies. The government is moving ahead with plans to attract both foreign and local investment into the power sector.
During a meeting of the Senate Standing Committee on Privatization, officials informed lawmakers that the federal cabinet had approved the transaction structure for the privatization of selected power distribution companies. The move is part of broader efforts to improve efficiency and reduce financial losses in the energy sector.
Under the proposed plan, the government intends to sell between 51 percent and 100 percent shares of Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), and Islamabad Electric Supply Company (IESCO). The DISCO privatization in Pakistan initiative is expected to draw strong investor participation.
Officials said roadshows would be organized in China, Saudi Arabia, Qatar, and Türkiye to attract potential buyers. Authorities also clarified that investors will not be allowed to acquire more than one distribution company, a measure aimed at maintaining competition in the sector.
According to the Privatization Commission, expressions of interest for FESCO can be submitted until July 7. Deadlines for the second and third distribution companies have been set for August 6 and September 7, respectively.
The committee was informed that Quetta Electric Supply Company (QESCO) currently faces losses of around Rs600 billion, making its privatization difficult at this stage. Meanwhile, distribution companies recorded losses of Rs255 billion up to April of the current fiscal year.
Officials further stated that losses across distribution companies reached Rs357 billion during the previous financial year. They added that Pakistan’s power sector circular debt, once estimated at Rs2.3 trillion, has declined, while the DISCO privatization in Pakistan process is expected to support further financial reforms.
