Pakistan moves to sell 50–100% shares of three power distribution companies

Pakistan has approved a plan to sell between 50% and 100% of shares in three major electricity distribution companies—Islamabad Electric Supply Company (IESCO), Gujranwala Electric Power Company (GEPCO), and Faisalabad Electric Supply Company (FESCO)—as part of broader power sector reforms and privatisation efforts.

The decision was taken during a meeting of the Cabinet Committee on Privatisation of the power sector, chaired by Deputy Prime Minister Ishaq Dar. The committee reviewed the proposed privatisation structure and approved the transaction framework for the three distribution companies.

According to the official statement, the government will offer between 50% and 100% of the share capital of each company for sale. The move is designed to attract private investment into the power distribution system and improve operational efficiency, financial discipline, and service delivery.

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The statement further clarified that while shareholding will be transferred under the plan, administrative control will remain subject to federal oversight and final approval by the federal cabinet. This suggests a phased and regulated approach to privatisation rather than a complete immediate transfer of control.

The inclusion of IESCO, GEPCO, and FESCO in the privatisation pipeline marks a significant step in Pakistan’s ongoing efforts to restructure its power sector, which has long faced challenges including circular debt, transmission losses, and inefficiencies in revenue collection.

Officials argue that introducing private-sector management and investment could help modernise infrastructure, reduce losses, and improve billing systems. However, such moves have historically also faced scrutiny from labour groups and policy experts concerned about pricing, employment security, and regulatory oversight.

The decision comes amid broader economic reforms aimed at stabilising public finances and improving governance in state-owned enterprises. The government is expected to move forward with formal bidding processes after securing final cabinet approvals and completing valuation and transaction structuring phases.