KARACHI: Pakistan is considering selling stakes in three high performing state-owned power distribution companies through an initial public offering, officials said on Wednesday, as the country looks to resolve financial issues facing the debt-ridden sector.

The South Asian nation’s power sector has been plagued by high rates of power theft and distribution losses, resulting in accumulating debts across the production chain - a concern also raised by the International Monetary Fund (IMF).

“Eventually, our way is through privatisation,” Secretary of the Power division Rasheed Langrial told journalists in Islamabad, adding that there was “serious thought” for an initial public offering (IPO) for three companies.

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The companies, which he termed high performing ones where there is high recovery of bills, are based in the major eastern urban centres of Gujranwala and Faislabad, as well as in the capital, Islamabad.

He said other state run companies that were making massive losses because of low recovery rates - due to theft and line losses - would need work to become “privatisation ready”.

There are ten distribution companies in Pakistan, which are locally called DISCOs.