The government has taken a major step toward power sector reforms by deciding to move forward with the IESCO GEPCO FESCO privatization plan. Authorities have approved the proposal to sell between 50 and 100 percent shares of Islamabad Electric Supply Company, Gujranwala Electric Power Company, and Faisalabad Electric Supply Company.
The decision was reviewed during a meeting of the Cabinet Committee on Privatization related to the power sector, chaired by Deputy Prime Minister Ishaq Dar. The meeting discussed various matters regarding the privatization process and future transaction strategy for the three electricity distribution companies.
According to the official statement issued after the meeting, the committee approved the transaction structure for all three DISCOs. Under the approved framework, the government will offer between 50 percent and 100 percent share capital for sale in each company.
The statement further explained that the shares would be sold along with administrative control of the companies. However, the final implementation of the decision will remain subject to approval by the federal cabinet.
Government officials believe the privatization process could help improve efficiency in the power sector, reduce financial losses, and strengthen electricity distribution systems. The move is also being viewed as part of broader economic reforms aimed at reducing the burden on public finances.
Energy experts say private sector involvement may improve operational management, billing recovery, and overall service delivery. At the same time, concerns have also been raised regarding the future of employees and the possible impact on electricity consumers after privatization.
Pakistan has previously pursued privatization plans for several state-owned institutions, and the latest move indicates the government’s intention to gradually introduce private investment into the energy sector. The proposed sale of IESCO, GEPCO, and FESCO is being considered a significant development in the country’s power industry reforms.
