FESCO privatization draws 12 domestic and international investor submissions

Pakistan's privatization program for state-owned electricity distribution companies (DISCOs) reached a major milestone on Friday as 12 domestic and international investor consortiums submitted Expressions of Interest (EOIs) for the Faisalabad Electric Supply Company (FESCO).

The submissions mark the official transition to the pre-qualification and due diligence phase for acquiring a 51% to 100% equity stake alongside operational management control.

Which international and local investor groups submitted bids for FESCO?

The Privatisation Commission confirmed that the 12 interested parties consist of three Turkish energy firms, one Chinese state-backed construction group, and eight prominent Pakistani business conglomerates.Among the international suitors, the Turkish investors include Aktor Elektrik Enerji Yatırımları, Genvera Enerji (part of the Celik Group), and Cengiz Enerji. China’s participation is represented by Jiang Xi Electric Power Construction, while local bidders feature major domestic entities such as Engro Energy, Sapphire Fibers, Artistic Milliners, K-Electric, and joint consortiums including Hub Power Holdings with Lucky Cement, Maple Leaf Cement with Kohinoor Textile, Nishat Mills with Pak Elektron, and Shirazi Investments of the Atlas Group. The strong response follows six months of international roadshows and consultative sessions led by the government to build market confidence.

"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."— Muhammad Ali, Adviser to the PM on Privatisation and Chairman of the Privatisation Commission

What are the next steps in Pakistan's DISCO privatization roadmap?

The submitted EOIs and statements of qualification will undergo evaluation against approved prequalification criteria. Shortlisted entities will subsequently be granted access to a virtual data room to perform detailed financial, legal, and technical due diligence before submitting binding bids.FESCO is part of the first batch of distribution companies slated for privatization alongside Gujranwala Electric Power Company (GEPCO) and Islamabad Electric Supply Company (IESCO). The submission deadline for GEPCO is August 21, while the IESCO deadline is set for September 7. The broader power-sector reform strategy aims to improve operational efficiency, modernize grid infrastructure, reduce commercial losses, and enhance customer services.