Pakistan govt inks financial advisory pact for privatisation of two Discos

The Privatisation Commission (PC) signed on Thursday a financial advisory services agreement (FASA) with a M&A (mergers and acquisitions) advisory firm Raiffeisen Investment for private sector participation through the privatisation of two electricity distribution companies, according a PC statement.

The agreement is expected to pave the way for the privatisation of Hyderabad Electric Supply Company (HESCO) and Sukkur Electric Power Company (SEPCO).

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The agreement was executed on November 27, 2025 in Islamabad.

“Raiffeisen Investment was the top-ranked Financial Adviser (FA), which was selected through a competitive process from among the financial advisory firms that participated in the bidding,” the PC said.

“The signing marks the conclusion of the appointment process for the Financial Adviser for the second batch of distribution companies (Discos) being taken forward for privatisation.”

Under the FASA, Raiffeisen Investment will serve as the sell-side financial adviser and will undertake comprehensive sell-side due diligence, market sounding, and engagement with potential investors.

“The FA will also support the Privatisation Commission in structuring and marketing the transactions, and in conducting a transparent and competitive bidding process, in line with the government’s privatisation framework and applicable rules.”

Privatisation of the first batch of Discos: Islamabad Electric Supply Company (IESCO), Gujranwala Electric Power Company (GEPCO), and Faisalabad Electric Supply Company (FESCO), is already underway.

“The inclusion of HESCO and SEPCO in the second batch reflects the government’s continued commitment to improving service delivery, efficiency, and financial sustainability in the power distribution sector through private sector participation.”

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Speaking at the occasion, Adviser to the Prime Minister on Privatisation, Muhammad Ali, expressed strong confidence in the capability and expertise of Raiffeisen Investment to support the commission in achieving optimal outcomes for the transactions.

He noted that the engagement of “an experienced, top-ranked FA is critical to ensuring value maximisation, investor confidence, and a credible privatisation process”.