Govt Finally Unveils Plan to Privatize All DISCOs

The Power Division informed the Senate Standing Committee on Privatization today that all power distribution companies (DISCOs) are being privatized under a phased plan, with preparations completed from the government’s side. Officials said IESCO, FESCO, and GEPCO will be privatized in the first phase, followed by PESCO and SEPCO in the second phase, while LESCO, MEPCO and HESCO are planned for the third phase. Briefing the committee, officials mentioned Turkey’s experience, where loss-making power companies with losses of around 80 percent were privatized and are now profitable. The Privatization Commission secretary said bidding for the first three DISCOs will begin in January and all three will be auctioned separately, with privatization expected to be completed by mid-next year. Committee members raised concerns over provincial coordination, loss burdens and private sector viability, while officials said investors will be required to commit to loss reduction and, if privatization stalls, the matter will be referred back to the cabinet. The Privatization Commission told the Senate Standing Committee that bidding for Pakistan International Airlines will be held on December 23 and will be broadcast live on the prime minister’s directive. Officials said 51 to 100 percent shares of PIA will be offered, with a second bidding round planned if initial bids fall short. The commission said all bidders have completed due diligence and have been given access to PIA’s records, routes and facilities, with final commercial terms to be concluded immediately. Each bidder must deposit Rs. 2 billion as earnest money, while previous issues related to taxes, GST exemptions and legacy liabilities have been resolved after consultations with the IMF. Officials added that routes to the UK and Europe have reopened and that the successful investor will be required to inject Rs 80 billion into PIA immediately after privatization.