Privatisation of three DISCOs begins in last quarter 2026

ISLAMABAD: A senior government official said that expressions of interest (EOIs) in the three most viable electricity distribution companies (DISCOs), including Gujranwala Electric Power Company (GEPCO), Faisalabad Electric Supply Company (FESCO) and Islamabad Electric Supply Company (IESCO), have already been called, and the privatisation of these companies will begin in the last quarter of this year after short listing the bidders.

Usman Akhtar Bajwa, Secretary of the Privatisation Commission, stated this in a meeting of the National Assembly Standing Committee on Privatisation held here on Wednesday with MNA Farooq Sattar in the chair.

Bajwa said that these three DISCOS have been shortlisted for privatisation because their 9-10 percent transmission and distribution losses are largely manageable. He said that because of their strong financial position, their privatisation will be an easier task. He said the EOI deadline for the FESCO was July 7. The last date for GEPCO is August 6, and for the IESCO it is September 7. He said that in the next phase, the privatisation process of Hyderabad Electric Supply Corporation (HESCO) and Sukkur Electric Supply Corporation (SEPCO) will begin. He said that apart from QESCO and TESCO, all DISCOs are under the privatisation programme of the Privatisation Commission. He said that the QESCO and TESCO were excluded on the directives of the federal government.

Chairman of the Privatisation Commission Muhammad Ali said that the PIA assets were worth Rs191 billion, whereas its liabilities stood at Rs182 billion. He said that after transferring total liabilities to the Arif Habib Consortium, the Government of Pakistan received Rs9 billion.

He said the purchaser (Arif Habib Group) has already served its intent to buy 25 percent of the remaining shares as a call option within 12 months of the first closing under the Share Purchase and Subscription Agreement for an additional payment of Rs45 billion, after which the total sale proceeds of PIA would reach around Rs55 billion.

He said the new owners injected Rs80 billion as fresh equity to strengthen the airline’s financial position and support fleet expansion and modernisation. He said the new management, through this fresh equity, would also enhance operational performance, customer service, and the position of the airline for long-term growth.

The committee thereafter took up for consideration “the Public Private Partnership Authority (Amendment) Bill, 2025” (Government Bill).

During deliberations on the Bill, the Committee was informed that the proposed amendments to the Public Private Partnership Authority Act, 2017, are part of the implementation of the Federal Cabinet’s decisions dated 08-09-2017 and 18-10-2022 to replace references to the “Federal Government” in statutes with the appropriate competent authorities. The amendments are intended to streamline decision-making, enhance administrative efficiency, and reduce the Cabinet’s workload through the delegation of routine matters.

The Committee was further apprised that the proposed amendment to Section 6 authorises the Prime Minister to nominate private sector members of the Board, while the amendment to Section 12A clarifies the Finance Division’s oversight of the Risk Management Unit.

The Committee, by majority, recommended that the proposed amendments be passed, noting that they align with the Government’s policy of appropriate delegation of powers to enable the Federal Cabinet to focus on strategic policy matters. However, one member observed that the collective wisdom of the Federal Cabinet should continue to be given due weight in matters of significant public importance.

The Committee was also briefed on the updated status of outsourcing operations at Islamabad, Lahore, and Karachi Airports, and the privatisation update of the House Building Finance Corporation.

Meanwhile, addressing the meeting, Farooq Sattar suggested that the Prime Minister should be empowered to take decisions of an urgent nature without taking the cabinet into confidence.

Copyright Business Recorder, 2026