FESCO privatisation: Turkiye, China, Pakistan firms eye stake

The Privatisation Commission (PC) has received 12 Expressions of Interest (EOIs) from local and foreign investors for the acquisition of a majority stake in the Faisalabad Electric Supply Company (FESCO), advancing the government’s plan to privatise power distribution companies.

According to a statement from Finance minister’s advisor Khurram Schehzad on Friday, the EOIs were submitted on the closing date for applications from prospective investors seeking to acquire between 51% and 100% shareholding in the FESCO, along with management control.

The interested parties include three companies from Turkiye, one from China and eight from Pakistan.

The Turkish firms are Aktor Elektrik Enerji Yatırımları San. ve Tic. A.Ş., Genvera Enerji A.Ş. (Celik Group) and Cengiz Enerji Sanayii ve Ticaret A.Ş., while China’s Jiang Xi Electric Power Construction also submitted an EOI.

The Pakistani investors comprise Engro Energy Limited, Sapphire Fibres Limited, Hub Power Holdings in consortium with Lucky Cement, Shirazi Investments (Atlas Group), Maple Leaf Cement in consortium with Kohinoor Textile, Nishat Mills Limited in consortium with Pak Elektron Ltd. (PEL), Artistic Milliners (Private) Limited, and K-Electric Limited.

The proposed transaction involves the sale of a controlling stake of 51% to 100% in the FESCO together with management control, as part of the federal government’s broader privatisation programme aimed at improving the performance and efficiency of state-owned enterprises.

“This is an important milestone in the privatisation of DISCOs. The strong response to FESCO reflects investor confidence in the potential of Pakistan’s electricity distribution sector and in the Government’s commitment to a transparent, competitive and professionally managed process,” said Muhammad Ali, Adviser to the Prime Minister on Privatisation and Chairman, Privatisation Commission, in a separate statement.

“The Commission now looks forward to engaging constructively with the prequalified investors through the due-diligence process and discussing the contours of the post-privatisation regime. The privatisation is intended to improve operational efficiency, modernise distribution infrastructure, strengthen customer service, reduce losses and support a more financially sustainable power sector. Over time, these measures will help create the conditions for more competitive electricity distribution and affordable, reliable power for consumers,” he added.

The Expressions of Interest and Statements of Qualification (SOQs) submitted by the interested parties will now undergo a comprehensive evaluation against the approved prequalification criteria. Applicants meeting the prescribed requirements will be prequalified and invited to the next stage of the transaction, where they will be granted access to the Virtual Data Room (VDR) to undertake detailed buy-side due diligence. FESCO is among the three electricity distribution companies in DISCOs Batch-I, alongside Gujranwala Electric Power Company (GEPCO) and Islamabad Electric Supply Company (IESCO). The deadlines for submission of EOIs for GEPCO and IESCO are 21 August 2026 and 7 September 2026, respectively.