Privatisation Commission prequalifies 10 parties for IESCO sale

The Privatisation Commission (PC) Board has prequalified 10 interested parties for the privatisation of Islamabad Electric Supply Company Limited (IESCO), while approving key decisions concerning Faisalabad Electric Supply Company Limited (FESCO), Zarai Taraqiati Bank Limited (ZTBL) and State Life Insurance Corporation of Pakistan (SLIC).

The decisions were taken at the board’s 260th meeting on Thursday, chaired by Muhammad Ali, Adviser to the Prime Minister on Privatisation and chairman of the Privatisation Commission, according to a press release.

The prequalified parties for IESCO include three Turkish energy companies and several prominent Pakistani business groups and investment consortia, reflecting domestic and international investor interest in the country’s electricity distribution sector.

The 10 prequalified parties are Aktor Elektrik Enerji Yatirimlari, Genvera Enerji and Cengiz Enerji of Türkiye; Engro Energy Limited; an Artistic Milliners-led consortium comprising The Lake City Holdings, Fatima Capital, Din Ventures and Fazal Cloth Mills; a Hub Power Holding-led consortium comprising Lucky Cement, Kohat Cement and Metro Ventures; Sapphire Fibers Limited; Novatex Limited; Bestway Cement Limited; and a Hasnaat Brothers Construction-led consortium comprising Dhilal Holding Group, Pak Steel, Bio-Labs and Farid Steel Casting.

The prequalified parties will proceed to the next stage of the transaction, including access to the Virtual Data Room to conduct detailed due diligence.

IESCO is part of the first batch of power distribution companies (DISCOs) identified for privatisation, alongside FESCO and Gujranwala Electric Power Company Limited (GEPCO).

Separately, the board approved the addition of consortium members to Artistic Milliners, which has already been prequalified for FESCO’s privatisation. The arrangement will facilitate the consortium’s participation in Batch-I DISCO transactions, subject to applicable requirements.

The board also approved changes to the transaction structure and restructuring plan for ZTBL’s privatisation. According to the commission, the revisions align with the prime minister’s directions to ensure the bank retains its focus on agricultural and farmer financing after privatisation.

In another decision, the board selected a consortium led by Deutsche Bank as the top-ranked interested party for appointment as financial adviser for SLIC’s privatisation. It also constituted a negotiation committee to finalise the Financial Advisory Services Agreement with the consortium.

The commission said the decisions were aimed at advancing the government’s privatisation programme through transparent and competitive transactions, attracting domestic and international investment, improving operational efficiency and service delivery, and maximising value for the government and the public.

Meta description: Privatisation Commission prequalifies 10 parties for IESCO’s privatisation and approves key decisions on FESCO, ZTBL and State Life.

Summary: The Privatisation Commission Board has prequalified 10 parties for IESCO’s privatisation, approved a consortium change for FESCO, revised ZTBL’s restructuring plan and selected a Deutsche Bank-led consortium as the top-ranked financial adviser candidate for State Life.