Pakistan Targets Q1 2027 Privatisation of Three Major Power Distributors

Key Facts

First Group: FESCO, GEPCO, and IESCO. Privatisation targeted for Q1 2027.

Due Diligence: Under way. Potential investors have requested additional time.

Reform Proposals: Intended for release by mid-November, following consultations.

Pakistan is targeting the privatisation of the Faisalabad Electric Supply Company, Gujranwala Electric Power Company, and Islamabad Electric Supply Company in the first quarter of 2027, Muhammad Ali, Prime Minister’s Adviser on Privatisation and Chairman of the Privatisation Commission, announced on Saturday, October 31. Due diligence for the three companies is under way, while prospective investors have sought more time to assess the transactions.

The government had initially planned to hold bidding in December 2026, though the schedule may be delayed following requests from investors. The next group, comprising the Hyderabad Electric Supply Company and Sukkur Electric Power Company, is targeted for completion in the second quarter of 2027.

The Lahore, Multan, Peshawar, and Hazara electricity distribution companies are also included in the programme, with their privatisation processes targeted for the second half of 2027. Ali said the government is working on investment plans and multi-year tariffs ahead of bidding, amid investor concerns regarding regulatory uncertainty, tariff revisions, and long-term investment protection.

A proposed framework would require privatised distribution companies to adopt smart metering and technology, reduce electricity losses, improve recoveries and supply, and meet performance benchmarks. Investors could face penalties for missing benchmarks, while efficiency gains and lower losses would be rewarded, with benefits intended to be shared with consumers.

What’s Next

The government intends to publish its reform proposals by mid-November, following consultations with relevant institutions, the prime minister, and the Steering Committee.

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