The government will begin privatizing three electricity distribution companies (DISCOs) in the last quarter of 2026, once the ongoing bidding process is complete, a senior Privatization Commission official told the Senate Standing Committee on Privatization.
Privatization Commission Secretary Usman Akhtar Bajwa said Expressions of Interest (EOIs) have already been invited from local and international investors for the Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), and Islamabad Electric Supply Company (IESCO). The three utilities collectively serve more than 14 million consumers across Punjab and the Islamabad region, and the deal offers investors between 51 percent and 100 percent shareholding along with full management control of each company. Each bidder will be allowed to acquire only one of the three DISCOs, though investors may submit bids for more than one.
Bajwa said the three companies were chosen for the first round of privatization because their transmission and distribution losses, at roughly 9 to 10 percent, are considered manageable, making them more financially attractive to prospective buyers.
Revised bidding deadlines
The submission deadlines have shifted since the process was first announced. FESCO’s original deadline of July 7 was extended to August 7, 2026, and GEPCO’s deadline was extended from August 6 to August 21, 2026, after investors requested more time to complete due diligence. The deadline for IESCO remains unchanged at September 7, 2026.
The committee was also told that investors from China, Türkiye, and Saudi Arabia have expressed interest in acquiring the distribution companies, though they have called for stronger sector regulation and broader power-sector reforms before committing.
After this first batch, the government plans to move on to the privatization of the Hyderabad Electric Supply Company (HESCO) and Sukkur Electric Power Company (SEPCO), for which a financial advisory agreement was already signed with Raiffeisen Investment in late 2025. The Quetta Electric Supply Company (QESCO) and Tribal Areas Electric Supply Company (TESCO) remain excluded from the privatization program under government directives.
PIA privatization update
The committee was also briefed on the privatization of Pakistan International Airlines (PIA). Privatization Commission Chairman Muhammad Ali said PIA had assets worth Rs. 191 billion against liabilities of Rs. 182 billion ahead of the transaction.
The government completed the transfer of 75 percent of PIA’s shares and management control to the buyer consortium on June 29, after receiving an upfront payment of Rs. 10 billion. The buyers have since exercised their option to acquire the remaining 25 percent stake for a further Rs. 45 billion, bringing the total transaction value to Rs. 55 billion.
The new owners have already injected Rs. 80 billion into PIA to strengthen its finances, expand and modernize its fleet, and improve operations and customer service. Separately, the committee was told that the government has transferred 11 PIA properties worth Rs. 14.2 billion — four in Pakistan and seven located in India, the Netherlands, Uzbekistan, and the United States — to the airline’s new owners, with the new management planning to make Islamabad its main operational hub.
The committee was further updated on the outsourcing of Islamabad, Karachi, and Lahore airports, as well as the privatization of the House Building Finance Corporation.
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