Fesco, Gepco, Iesco: PC invites EoIs for sell-off

ISLAMABAD: The Privatisation Commission has invited Expressions of Interest (EoIs) from prospective investors for the privatisation of three major power distribution companies —Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO) and Islamabad Electric Supply Company (IESCO) — offering between 51 percent to 100 percent shareholding along with management control.

The Cabinet Committee on Privatisation (CCoP), chaired by Deputy Prime Minister and Foreign Minister Ishaq Dar has already approved the transaction structure for the three DISCOs. The decision has been duly ratified prior to the issuance of EOIs.

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The transaction forms part of the government’s broader power sector reform agenda aimed at improving operational efficiency, reducing losses and attracting private investment into distribution companies.

FESCO, GEPCO and IESCO — collectively termed as “Batch-I DISCOs” — are wholly-owned public limited companies responsible for electricity distribution across key regions of Punjab and Islamabad. FESCO serves over 5.7 million consumers in central Punjab, GEPCO caters to approximately 5.1 million consumers in Gujranwala and surrounding districts, while IESCO supplies electricity to around 4.1 million consumers in Islamabad, Rawalpindi and adjoining areas, including Azad Jammu and Kashmir.

The Privatisation Commission stated that interested parties, whether individual firms or consortiums, must submit separate EOIs for each DISCO. Applicants are also required to submit Statements of Qualification (SOQs), which will be used to pre-qualify investors for the next stage of the bidding process.

A non-refundable processing fee of $5,000 or Rs1.4 million per DISCO has been set. In the case of consortiums, only one member will be required to pay the fee.

The deadlines for submission of EOIs have been fixed as July 7, 2026 for FESCO, August 6, 2026 for GEPCO, and September 7, 2026 for IESCO.

The Commission clarified that only pre-qualified parties will be granted access to a virtual data room to conduct due diligence and participate in the bidding process.

Officials emphasised that the invitation does not constitute a binding offer but is intended to gauge investor interest. The government retains the right to modify the transaction structure, timelines or conditions at any stage without assigning any reason.

An online briefing for potential investors has already been scheduled, during which the Privatisation Commission and its financial adviser will share key investment highlights and transaction details.

The government and the Privatisation Commission reserve the right to accept or reject any or all EOIs, or to cancel the process at any stage. Detailed transaction documents, including the information memorandum and draft bidding documents, will be provided to pre-qualified parties at a later stage.

The privatisation of DISCOs remains a central pillar of Pakistan’s energy sector reforms, with authorities expecting that private sector participation will improve governance, reduce transmission and distribution losses and enhance overall service delivery.

Copyright Business Recorder, 2026