Privatization of 3 Electricity Companies to Be Finalized by End of Fiscal Year

The federal government has tasked a Financial Advisor (FA) with expediting the privatization transaction of three major power distribution companies (DISCOs): Islamabad Electric Supply Company (IESCO), Gujranwala Electric Power Company (GEPCO), and Faisalabad Electric Supply Company (FESCO). The Privatization Commission (PC) will seek approval from the Cabinet Committee on Privatisation (CCoP) before moving these transactions to the market. These IPPs will be sold by the end of the current year, reported Business Recorder. The Ministry of Energy with the support of the World Bank and the Power Division has finalized the Request for Proposal (RFP) for hiring the FA. The process is currently underway. During a meeting chaired by Prime Minister Shehbaz Sharif on December 27, 2024, progress on the DISCOs’ privatization and their operational performance was reviewed. The World Bank has submitted a detailed report on the privatization strategy, which has been shared with relevant stakeholders, including the Privatization Commission. The Power Division has been directed to complete nine prior actions aligned with World Bank recommendations by January 31, 2025. This includes ensuring required approvals from DISCOs, CPPA-G, and NEPRA. As part of its mandate, the advisor will review completed tasks, suggest necessary adjustments, and structure the transaction. The PC will further refine eligibility criteria and investor qualifications based on feedback from prospective investors.