Pakistan's Privatization Commission plans to invite expressions of interest next month for stakes in three electricity distribution companies and a state-owned bank, officials said.
The four entities are Islamabad Electric Supply Company, Gujranwala Electric Power Company, Faisalabad Electric Supply Company, and Zarai Taraqiati Bank Limited.
The move forms part of the government's broader divestment program tied to its IMF reform commitments.
Which companies are being privatized in Pakistan's next bidding round?
The first phase covers IESCO, GEPCO, and FESCO, three of Pakistan's electricity distribution companies, along with Zarai Taraqiati Bank Limited.
A second phase will follow, covering additional power distributors including Hyderabad Electric Supply Company and Sukkur Electric Power Company.
The Privatization Commission is targeting foreign investors, particularly from the Middle East and Turkey, to participate in the process.
Why is Pakistan privatizing its power distribution companies?
Pakistan's power sector has placed severe strain on public finances, with annual subsidies exceeding PKR 1.2 trillion in fiscal year 2025. Transmission and distribution losses, combined with electricity theft, have kept losses at around 20%, eroding the financial viability of distribution companies.
The government views privatization as a means of transferring operational risk to private investors while reducing the subsidy burden on the state.
As part of pre-privatization reforms, the government has restructured governance at the distribution companies. Around 90% of board positions have been filled with private-sector professionals, aimed at improving transparency and operational efficiency ahead of the sale process.
What challenges does Pakistan's privatization program face?
Despite the momentum, the program faces resistance from some political parties and employee unions, analysts said.
Privatization efforts in Pakistan have historically encountered legal challenges, labor opposition, and delays in regulatory approvals.
The government's ability to sustain investor interest will depend on how quickly it resolves these structural and political obstacles alongside the formal bidding process.
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