ISLAMABAD: The government of Pakistan has formally invited expressions of interest (EOIs) from local and international investors for the privatisation of three major electricity distribution companies: Faisalabad Electric Supply Company (Fesco); Gujranwala Electric Power Company (Gepco); and Islamabad Electric Supply Company (Iesco).
The three entities, collectively designated as the ‘Batch-I Discos’, are wholly owned by the government and together serve nearly 15 million electricity consumers across Punjab, Islamabad and Azad Jammu and Kashmir (AJK). The move is part of the government’s broader privatisation and energy-sector restructuring agenda aimed at improving efficiency, reducing losses, attracting strategic investment and easing the fiscal burden on the public sector.
The privatisation process is being managed by the Privatisation Commission (PC), which has appointed Alvarez & Marsal Middle East Limited as the financial adviser for the transaction.
According to the invitation issued by the Privatisation Commission, eligible interested parties include companies, firms, body corporates and consortiums of such entities. Individuals, as well as enterprises owned or controlled by the federal or provincial governments, are not eligible to participate.
Interested investors may submit EOIs for one or more Discos, either independently or as part of a consortium, but are required to submit a separate EOI for each company. Consortium structures may also be modified after submission of the original statement of qualifications (SOQ), subject to approval by the Privatisation Commission.
The government has made it clear that only pre-qualified parties will be granted access to bid documents and the virtual data room for due diligence, after evaluation of the submitted SOQs in accordance with the request for statement of qualifications (RSOQ).
Submission deadlines are staggered across the summer ie Fesco on July 7, Gepco on August 6; and Iesco on September 7, 2026. Separate applications are required for each company.
The three power distribution companies collectively operate one of the country’s largest electricity distribution networks, comprising 132-kV and 66-kV grid stations, transmission and distribution infrastructure, and operational facilities spread across key economic and industrial regions.
Fesco serves central Punjab, including Faisalabad, Jhang, Toba Tek Singh, Chiniot, Sargodha, Mianwali, Khushab and Bhakkar. The utility covers approximately 44,300 square kilometers and supplies electricity to nearly 5.7 million consumers.
Gepco covers Gujranwala, Sialkot, Narowal, Gujrat, Mandi Bahauddin and Hafizabad districts. It serves around 5.1 million consumers across a geographical area of roughly 17,200 square kilometres.
Iesco operates in Islamabad, Rawalpindi, Jhelum, Attock, Chakwal and Azad Jammu and Kashmir, catering to approximately 4.1 million consumers over an area spanning 23,200 square kilometres.
Officials familiar with the process said the privatisation drive is intended to bring private-sector expertise, operational discipline and capital investment into Pakistan’s electricity distribution segment, which has long struggled with transmission losses, governance challenges and financial inefficiencies.
Under the submission requirements, interested parties are required to submit six copies of their EOI package, including one original, four hard copies and one electronic copy in an uncorrupted USB device. The submission must include corporate profile information, ownership details, place of incorporation and other background documentation.
Each EOI application must also be accompanied by a non-refundable processing fee of $5,000 or Rs1.4 million per Disco. In the case of consortiums, the fee may be paid by any one consortium member. Payments can be made through bank draft, pay order in favour of the Privatisation Commission, or via electronic and wire transfer mechanisms specified in the transaction documents.
The Privatisation Commission emphasised that the invitation is solely an expression-of-interest solicitation and does not constitute an offer to sell securities or assets of the Discos. It also reiterated that the government reserves broad discretionary powers throughout the process.
The commission further clarified that no interested party would have the right to challenge any modification, incentive, concession or restructuring introduced during the process.
