Pakistan received 'strong interest' from foreign investors for Discos privatisation: official

Pakistan has received strong interest from foreign investors during the ongoing roadshows being held abroad to sell three power distribution companies (Discos) under the privatisation agenda ahead of the launch of the country’s multi-buyer and competitive electricity market by September 2026, according to a govt official.

“We have received a very high and a strong response from [foreign] investors for the three Discos in the ongoing roadshows in progress these days. The report on how many investors are interested in acquiring the Discos would be there in a couple of weeks,” Advisor to Finance Minister Khurram Schehzad said while speaking virtually at a seminar titled ‘Post Budget 2026-27’ organised by IBA Karachi on Monday.

Prime Minister Shehbaz Sharif and Privatisation Minister Muhammad Ali were there in Turkiye to hold roadshows for attracting investment in Discos, said Schehzad, who is also on the Privatisation Commission’s (PC) board.

As per some media reports, Pakistan would also hold roadshows in China and Saudi Arabia to market the distribution companies, which include Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO), and Gujranwala Electric Power Company (GESCO).

The advisor further said “the cost of energy remains a big challenge when it comes to attracting investment, expanding businesses, and taking the economy forward”.

To address the costing issue, the government aims to launch multi-buyer and competitive electricity market by September 2026.

At present, the state-run Central Power Purchasing Agency (CPPA-G) is the only one (single) buyer of power being produced by all generation companies both in public and private sectors in Pakistan.

The launch of the multi-buyer market would transact Pakistan from the current single-buyer market to multi-buyer market under the framework of Competitive Trading Bilateral Contract Market (CTBCM).

It was learnt Pakistan would hold its first-ever auction to sell electricity at a competitive price to bulk consumers after the launch of multi-buyer market. The government has allocated 800 megawatts (MW) to be sold by the new power producers at competitive prices through the auction.

Otherwise, there exists demand for over 4,000MW in CTBCM (which comes to about 16% of the existing demand at 26,000MW under the outdated single-buyer regulated power system), a concerned official said late last year.

A total of 28 transactions had been put on the privatisation agenda of the country at present. Such transactions in the pipeline are in multiple sectors including, airports, banks and power distribution companies, Schehzad said.

‘Industrial policy in a few weeks’

Finance minister advisor further said the much-talked industrial policy was in the finalisation phase. “The industrial policy is going to be launched in a few weeks”.

“The policy is being considered as an important document. It would set direction for industries, help expansion and attract investment.

“The industrial policy will give tax reliefs and incentives on investment,” he said.

Schehzad argued local and foreign investors had resumed investment activities in Pakistan after “transition of the economy from stabilisation”.

“The year FY27 is going to be the year of growth in Pakistan.”

He further said PIA privatisation exhibited “a strong appetite for investment” as two big local investors offered $1.2 billion in investment.

“Some 19 foreign companies have exited from Pakistan in recent years. But in place of them, 79 foreign companies from 22 countries have entered the country in the same years.

“Nestle has announced to invest $60 million in its export facility in the country recently. Besides, Google has announced to set up its office in Pakistan to assemble Google Chromebooks. Turkish Petroleum has announced plans to enter Pakistan. Aramco, Guvnor, Wafi and a number of automobile players have announced plans to operate their businesses in the country,” Schehzad said.