Pakistan opens privatization bids for FESCO, GEPCO and IESCO power distribution companies

Pakistan's Privatization Commission has invited investors to acquire majority stakes in three state-owned electricity distribution companies, marking a significant step in the government's power sector reform program.

The three companies on offer are the Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), and Islamabad Electric Supply Company (IESCO). Investors can bid for between 51 percent and 100 percent share capital in each company, along with full management control.

What is Pakistan's plan to privatize FESCO, GEPCO and IESCO?

Pakistan is selling majority stakes and management control in three power distribution companies as the first phase of a broader DISCOs privatization drive. Bids are being invited for FESCO, GEPCO and IESCO, with stake sizes ranging from 51 to 100 percent. The Cabinet Committee on Privatization approved the transaction structure, and financial advisors Alvarez and Marsal Middle East Limited are managing the process.

How can investors bid for Pakistan's power distribution companies?

Interested parties must submit six copies of their expression of interest and pay a non-refundable processing fee of PKR 1.4 million per company. Deadlines are staggered across the three companies: FESCO on July 7, 2026, GEPCO on August 6, 2026, and IESCO on September 7, 2026.

The Privatization Commission has reserved the right to modify or terminate the process at any stage.

How many consumers do FESCO, GEPCO and IESCO serve?

The three companies collectively serve nearly 15 million electricity consumers across some of Pakistan's most economically active regions.

FESCO covers central Punjab, including Faisalabad, Jhang and Sargodha, with 5.7 million consumers. GEPCO supplies 5.1 million customers in Gujranwala, Sialkot and surrounding districts, while IESCO serves 4.1 million consumers across Islamabad, Rawalpindi and parts of Azad Jammu and Kashmir.

Why is Pakistan privatizing its power distribution companies?

Pakistan's power sector has long been weighed down by inefficiencies, high line losses and mounting circular debt that has strained public finances for decades. Officials argue that private management will attract investment, improve service delivery and reduce the fiscal burden on the state. The privatization drive also aligns with commitments made under Pakistan's IMF reform program.

What are the risks and concerns around the DISCOs privatization?

Analysts say the move could draw interest from regional energy firms and global investors, with the government planning international roadshows in markets including China, Saudi Arabia and Turkey. Concerns remain, however, around regulatory stability and political risk.

Critics have also warned that privatization could lead to tariff increases and reduced electricity access for low-income households.