ISLAMABAD: The Privatisation Commission has reportedly decided to offer two power distribution companies (Discos) — Gujranwala Electric Power Company (GEPCO) and Faisalabad Electric Supply Company (FESCO) — to the private sector in the first phase.
However, there is still no clarity on the mode of privatisation, well-informed sources told Business Recorder.
Sources said the privatisation of Islamabad Electric Supply Company (IESCO), whether through full divestment or a long-term concessional model, has been put on hold for the time being.
READ MORE: DISCO privatisation sees big policy shift: only GEPCO up for sale?
Letters of Interest (LoIs) for GEPCO and FESCO are expected to be issued by the end of the current month, as the government aims to complete the transaction by the end of the current fiscal year.
According to sources, financial advisers Alvarez & Marsal have submitted a report outlining restructuring plans and transaction structure options.
Following consultations with stakeholders, the PC is expected to seek approval of the transaction structure and restructuring plan from the PC Board and the Cabinet Committee on Privatisation (CCoP) by the last week of January 2026. After CCoP approval, an Expression of Interest (EOI) will be published by the end of January 2026.
The sources added that the FA team has already held a meeting with officials of the Power Division on the proposed transaction structure and restructuring plan, which raised several questions. Another meeting on the matter is expected soon.
A Steering Committee has been constituted to expedite the privatisation process of DISCOs.
The committee is headed by Deputy Prime Minister Ishaq Dar and includes Adviser to the Prime Minister on Privatisation Muhammad Ali, Power Minister Sardar Awais Leghari, Secretary Power Dr Fahre Alam Irfan, Secretary Privatisation Division Hammad Shamimi, Secretary Privatisation Commission Usman Akhtar Bajwa, Additional Secretary Power Division Syed Imtiaz Hussain Shah, Joint Secretary Power Division Ghulam Rasool Anjum, and Managing Director PPMC Abid Lodhi.
The terms of reference of the Steering Committee include guiding and spearheading the privatisation of DISCOs through a whole-of-government approach; reviewing and rationalising timelines to accelerate the process; developing a comprehensive communication strategy to inform stakeholders and address concerns; ensuring compliance with relevant laws and regulations; facilitating inter-ministerial coordination for fast-track approvals; proactively identifying and mitigating risks; and reviewing any other related issues requiring consideration.
The committee is required to submit a weekly progress report to the Prime Minister, highlighting milestones achieved versus targets through a structured matrix.
Copyright Business Recorder, 2026
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