Investors from China, Qatar, Saudi Arabia, and Turkey have expressed interest in Pakistan's electricity distribution company (DISCO) privatization.
Foreign firms are expected to partner with local investors in the bidding process, officials told the Senate Standing Committee on Privatization on Tuesday.
The briefing was chaired by Senator Afnan Ullah Khan, who heads the Senate committee.
The government plans to hold roadshows in all four countries to brief potential buyers.
The federal cabinet has approved the transaction structure for the privatization. The move clears a key hurdle in the long-delayed reform of Pakistan's power sector.
Which DISCOs are being privatized?
The government will sell 51% to 100% stakes in three DISCOs. These are the Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), and Islamabad Electric Supply Company (IESCO).
International and domestic investors will both be barred from acquiring more than one DISCO. The restriction aims to promote competition and prevent market concentration.
Expressions of interest (EoI) for FESCO can be submitted until July 7. The deadline for the second distribution company is August 6, and for the third, September 7.
The Quetta Electric Supply Company (QESCO) is not currently feasible for privatization. Its accumulated losses have reached nearly PKR 600 billion.
DISCOs collectively recorded losses of PKR 255 billion in the first 10 months of the current fiscal year through April. Losses stood at PKR 357 billion in the previous fiscal year.
The figures highlight the financial burden on Pakistan's energy sector.
What is happening with Pakistan's circular debt?
The losses are one of the biggest contributors to Pakistan's power sector circular debt, which has reached PKR 2.3 trillion. Officials said the figure has declined, but did not provide an updated estimate during the briefing.
The government hopes privatization, together with governance reforms, will improve operational efficiency and reduce losses. The reforms are expected to ease the financial burden on Pakistan's energy sector.
Comments
See what people are discussing