Three DISCOs move closer to privatisation as PC Board approves restructuring
- Expression of Interest deadlines for FESCO, GEPCO, and IESCO is August 7, August 21, and September 7, respectively
The Privatisation Commission Board recommended restructuring plans for three power distribution companies (FESCO, GEPCO, IESCO) to facilitate their privatisation, aiming to attract investors and maximize government value.
- Restructuring and privatisation of three power distribution companies.
- Establishing a Special Purpose Vehicle for DISCO assets.
- Outsourcing plans for major international airports.
The Privatisation Commission (PC) Board on Tuesday recommended that the Cabinet Committee on Privatisation (CCoP) approve restructuring plans and schemes of arrangement for the privatisation of three state-owned power distribution companies (DISCOs), marking another step in the government’s power sector reform programme.
The recommendation covers the first batch of DISCOs — Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), and Islamabad Electric Supply Company (IESCO).
The decision was taken at a meeting chaired by Adviser to the Prime Minister on Privatisation and Privatisation Commission Chairman Muhammad Ali.
According to the Privatisation Commission, the restructuring plans have been prepared on the basis of the audited financial statements of the three companies for the period ended March 31, 2026.
Under the proposed framework, a government-owned Special Purpose Vehicle (SPV) will be established to carve out selected assets and liabilities of the three DISCOs, with the aim of creating a commercially viable transaction structure while maximising value for the government and attracting private-sector investors.
The board was also informed that the privatisation process has generated strong interest from domestic and international investors. The deadlines for submission of Expressions of Interest (EOIs) are August 7 for FESCO, August 21 for GEPCO, and September 7 for IESCO.
Separately, the board constituted two Transaction Committees to oversee the outsourcing of Islamabad, Lahore and Karachi airports.
The Asian Development Bank has been appointed as financial adviser for the outsourcing of Islamabad International Airport, while the appointment of financial advisers for Lahore and Karachi airports is currently under way.
The board also approved the appointment of RSM Avais Hyder Liaquat Nauman, Chartered Accountants, to conduct transaction-specific audits of privatisation deals completed during financial years 2024-25 to 2026-27.
It noted that BDO Ebrahim & Co., Chartered Accountants, had already been appointed through a competitive bidding process to conduct the annual audit of the Privatisation Commission’s financial statements for financial years 2025-26 to 2027-28.
The board reaffirmed its commitment to implementing the government’s privatisation programme in a transparent, competitive and professionally managed manner to improve efficiency, attract private investment and maximise value for the government.
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