EoIs’ approval for sell-off of three DISCOs deferred till Sept

ISLAMABAD: The Board of the Privatisation Commission (PC) scheduled to meet on Wednesday, is expected to approve the Expressions of Interest (EoIs) for the privatisation of three power distribution companies (DISCOs) deferred till September though originally planned for the current year, well-informed sources told Business Recorder.

In this regard, a high-level meeting was held at the Ministry of Privatisation under the chairmanship of Adviser to the Prime Minister on Privatisation, Muhammad Ali, where issues related to the proposed sell-off of DISCOs were discussed.

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).

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The Power Division and the Privatisation Division had earlier committed to the Prime Minister and the International Monetary Fund (IMF) that EoIs for these DISCOs would be floated in April 2026. However, the Power Division has now acknowledged that the process has been delayed until September 2026 due to multiple factors. Previously, the government aimed to complete the transactions within the current fiscal year.

The Privatisation Division is working to ensure that a viable business proposition is presented to investors while safeguarding consumer interests.

According to sources, potential investors have sought clarity on end-consumer tariffs, expressing reservations over the continuation of a uniform tariff regime. Some investors have also proposed the introduction of 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 objective of reducing losses, attracting investment, and improving operational efficiency.

In the second phase, the government plans to offer Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), and Hazara Electric Supply Company (HAZECO) for privatisation.

The Board is also expected to approve the transaction structure and restructuring plan of Zarai Taraqiati Bank Limited, in addition to reviewing the overall privatisation programme.

Copyright Business Recorder, 2026