Pakistan power distribution privatization

In late July 2026, Pakistan’s Privatisation Commission approved a restructuring framework for the first batch of state-owned power distribution companies (DISCOs) slated for sale, including Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), and Islamabad Electric Supply Company (IESCO). To maximize state value and ensure commercial viability, a government-owned special-purpose vehicle will be created to separate specific assets and liabilities. The Commission set deadlines for Expressions of Interest (EOI) for FESCO on 7 August, GEPCO on 21 August, and IESCO on 7 September 2026.

By late August, the privatization process drew significant international and domestic interest. The Privatisation Commission reported receiving EOIs from 11 prospective investors for GEPCO, with bidders seeking between 51 percent and 100 percent stakes, including management control. 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 bidders include Engro Energy, Sapphire Fibers, and K-Electric.

Concurrently, the Ministry of Privatization established a technical committee to evaluate whether the Lahore Electric Supply Company (LESCO) and Multan Electric Power Company (MEPCO) should be split into smaller entities before sale. This review aims to address high electricity theft, large distribution losses, and weak bill-recovery rates to make these utilities more attractive to investors. In parallel, LESCO has launched a merit-based recruitment drive to modernize its network and improve service quality.