The Privatization Commission Board has approved a restructuring plan for Faisalabad Electric Supply Company (FESCO), bringing one of Pakistan’s major power distribution companies a step closer to privatization.
The board meeting, chaired by Adviser to the Prime Minister on Privatization Muhammad Ali, approved the plan prepared by the financial adviser of the transaction. The proposal will now be forwarded to the Cabinet Committee on Privatization for final approval. FESCO is included in the first group of power distribution companies scheduled for privatization, along with Gujranwala Electric Power Company (GEPCO) and Islamabad Electric Supply Company (IESCO).
The Privatization Commission has already invited expressions of interest from both local and international investors for the sale of these distribution companies as part of broader reforms aimed at improving efficiency, reducing financial losses, and increasing private sector participation in the power sector.
In a separate decision, the board approved a KPMG-led consortium as the preferred financial adviser for the privatization of the House Building Finance Company Limited (HBFCL) and formed a committee to finalize the advisory services agreement.
The board also reviewed a proposed advisory arrangement with the Asian Development Bank regarding the outsourcing of operations at Islamabad International Airport under a long-term concession model.
However, members requested further clarification on certain terms before a final decision is made. The Privatization Commission stated that the initiative aims to enhance operational efficiency, improve passenger services, and align airport operations with international best practices.
