CCoP approves restructuring plan for FESCO, GEPCO and IESCO

The Cabinet Committee on Privatisation (CCoP) has approved a restructuring plan for the first batch of electricity distribution companies, covering Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO) and Islamabad Electric Supply Company (IESCO), as part of wider power-sector reforms.

The meeting, chaired by the Deputy Prime Minister, approved a plan aimed at making the distribution companies financially sustainable, professionally managed, digitally enabled and more consumer-focused.

Under the plan, selected assets, including land parcels, and certain liabilities, including post-retirement benefits of already retired employees along with related funds, will be transferred to a government-owned Special Purpose Vehicle (SPV). Retirement benefits of current employees will remain with the respective DISCOs.

Inter-governmental receivables and payables will also be netted off to settle government receivables, according to the Privatisation Commission.

The commission said the restructuring plan was fiscally neutral and designed to enhance value for the government while ensuring the viability of future transactions.

Advisor to the Prime Minister on Privatisation Muhammad Ali said consumers would remain protected under Pakistan’s regulatory framework, with electricity tariffs continuing to be determined through the applicable National Electric Power Regulatory Authority (NEPRA) process and notified by the government.

He said the reform process would seek measurable improvements in reliability, efficiency and customer service.

FESCO, GEPCO and IESCO collectively serve more than 14 million consumers across major industrial, commercial and urban centres, making improvements in their performance central to efforts to strengthen electricity services and support economic competitiveness.

The government said service continuity would remain a priority during the reform process, while employee interests would be addressed in accordance with applicable laws and transaction arrangements.

The approval marks a significant step in the government’s efforts to modernise electricity distribution companies and address longstanding structural challenges in the power sector.