Ministry likely to invite Expressions of Interest for sell-off of 3 Discos

ISLAMABAD: The Ministry of Privatisation is likely to float Expressions of Interest (EoIs) in the middle of the current month for the privatisation of three power distribution companies (DISCOs) planned for the current year, well-informed sources told Business Recorder.

A couple of weeks ago, a senior team from the Power Division, led by Federal Minister for Power Sardar Awais Ahmad Khan Leghari and Secretary Dr Fakhre Alam Irfan, visited the Ministry of Privatisation. They held detailed discussions with Adviser to the Prime Minister on Privatisation, Muhammad Ali, on key issues related to the DISCOs’ sell-off.

In the first phase, the government intends to privatise Islamabad Electric Supply Company (IESCO), Gujranwala Electric Power Company (GEPCO), and Faisalabad Electric Supply Company (FESCO).

READ MORE: Nepra calls for DISCO restructuring, privatization

However, the Power Division has acknowledged that the privatisation process has been delayed until September 2026 due to various reasons. Earlier, the target was to complete the sell-off of these entities within the current fiscal year.

During interaction sessions, potential investors referred to the case of K-Electric, expressing concerns that challenges faced by the country’s only privatised power utility should not be repeated.

“We have apprised the Power Division’s top leadership that the privatisation process is progressing at a good pace. The Division has also been briefed on meetings held with local investors and, to some extent, international investors. Their feedback will help refine the Expressions of Interest (EoIs),” Muhammad Ali said.

Responding to another query, he added that the Ministry of Privatisation is also working to ensure that a viable business proposition is presented to investors, while safeguarding consumer interests.

The Planning Commission is currently working on the DISCOs’ business model, including return formulas. The government intends to link returns to performance and efficiency.

The Ministry of Planning will also arrange meetings between interested investors and the Power Minister to address their concerns.

According to sources, investors have sought clarity on end-consumer tariffs, as they do not support the continuation of a uniform tariff regime. Some investors have also proposed a dollar-indexed tariff mechanism.

Pakistan is also planning to send a delegation to Türkiye to study its model for privatising power distribution companies, with the aim of reducing losses, attracting investment, and improving operational efficiency. In the second phase, Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), and Hazara Electric Supply Company (HAZECO) will be offered for privatisation.

Meanwhile, Hyderabad Electric Supply Company (HESCO), Sukkur Electric Power Company (SEPCO), and Peshawar Electric Supply Company (PESCO) are expected to be offered under a concessional model. Tribal Areas Electric Supply Company (TESCO) and Quetta Electric Supply Company (QESCO) will initially be retained for improvement and later offered through management contracts.

Copyright Business Recorder, 2026