- July 22, 2026
- Posted by: Tresmark
- Category:
The Privatisation Commission (PC) is facing challenges in attracting investors for the first phase of power distribution company (Disco) privatisation, as concerns over regulatory uncertainty and policy consistency continue to affect market confidence, according to informed sources.
To promote the sale of Faisalabad Electric Supply Company (Fesco), Gujranwala Electric Power Company (Gepco), and Islamabad Electric Supply Company (Iesco), the commission conducted investor roadshows across Pakistan as well as in Türkiye, Saudi Arabia, and China, engaging more than 30 local business groups and over 20 international investors.
Potential investors reportedly raised concerns about the post-privatisation regulatory framework, policy stability, and the long-term investment environment. They also called for performance-based incentives, greater market liberalisation, stronger regulatory oversight, and permission for self-generation to improve returns.
Despite these reservations, several local and foreign investors have expressed interest in the first batch of Discos. The government has indicated that investors could earn returns of up to 20% through operational improvements and regulatory reforms, while maintaining a rupee-based tariff structure.
The privatisation plan also includes settling legacy liabilities, improving the financial position of the utilities, and offering investors between 51% and 100% ownership with full management control. Expressions of Interest (EoIs) for Fesco, Gepco, and Iesco will be accepted through July, August, and September 2026, with bidding expected to begin sequentially from October. Additionally, the government plans to offer Hesco and Sepco under long-term concession agreements during FY2026-27.
