The federal government plans to begin the privatization of three electricity distribution companies (DISCOs) in the final quarter of 2026, following the completion of the bidding process, according to the Privatization Commission.
Speaking to the National Assembly Standing Committee on Privatization, Privatization Commission Secretary Usman Akhtar Bajwa said that Expressions of Interest (EOIs) have already been invited for:
- Faisalabad Electric Supply Company (FESCO)
- Gujranwala Electric Power Company (GEPCO)
- Islamabad Electric Supply Company (IESCO)
Why These Companies?
The three DISCOs were selected because they have relatively low transmission and distribution losses—around 9 to 10 percent—and stronger financial performance, making them more attractive to potential investors.
EOI Submission Deadlines
The Privatization Commission has announced the following deadlines for interested investors:
- FESCO: August 7
- GEPCO: August 6
- IESCO: September 7
Following this phase, the government intends to move forward with the privatization of:
- Hyderabad Electric Supply Company (HESCO)
- Sukkur Electric Power Company (SEPCO)
However, Quetta Electric Supply Company (QESCO) and Tribal Areas Electric Supply Company (TESCO) have been excluded from the privatization program under government policy.
Update on PIA Privatization
The committee also reviewed progress on the privatization of Pakistan International Airlines (PIA).
Privatization Commission Chairman Muhammad Ali informed lawmakers that before the transaction, PIA had assets worth Rs. 191 billion and liabilities of Rs. 182 billion.
The government has already received Rs. 10 billion as the initial payment. Under the agreement, the buyer has the option to acquire the remaining 25 percent stake for Rs. 45 billion, bringing the total deal value to Rs. 55 billion.
Officials further stated that the new owners have committed Rs. 80 billion to strengthen the airline through fleet modernization, operational improvements, financial restructuring, and enhanced customer services.
Other Privatization Initiatives
The committee was also briefed on the ongoing outsourcing process for Islamabad, Karachi, and Lahore airports, along with progress on the privatization of the House Building Finance Corporation (HBFC).
