Pakistan electricity privatization draws Saudi and Turkish interest

Pakistan’s privatization of state-owned electricity distribution companies has attracted significant interest from both domestic and international investors. The Privatisation Commission reported receiving expressions of interest from 11 prospective investors for the Gujranwala Electric Power Company (GEPCO), which is part of an initial batch of three distributors slated for sale, including Faisalabad Electric Supply Company (FESCO) and Islamabad Electric Supply Company (IESCO).

Investors are seeking to acquire between 51 percent and 100 percent stakes, including management control. The international interest includes Saudi Arabia’s Al Sharif Contracting and Commercial Development Company and three Turkish firms: Aktor Elektrik Enerji Yatırımları, Genvera Enerji, and Cengiz Enerji. Local Pakistani bidders include Engro Energy, Sapphire Fibers, K-Electric, and several other major business groups.

The government aims to use these privatizations to address systemic issues in the power sector, such as electricity losses, weak recoveries, and mounting circular debt. Muhammad Ali, adviser to the prime minister on privatization and chairman of the Privatisation Commission, stated that the response indicates investor confidence in the sector and the government’s commitment to a transparent and competitive process.