Bids for Power Distribution Firms Under Evaluation

The evaluation of interested parties for the privatisation of Pakistan’s electricity distribution companies (Discos) has reached an advanced stage, the National Assembly Standing Committee on Privatisation was informed on Thursday.

 

The government is seeking to sell 51% to 100% stakes along with management control in each Disco. Committee Chairman Dr Farooq Sattar called for a transparent, competitive and market-based process, including proper valuation, reserve prices, effective regulatory oversight by Nepra and regular financial and performance audits.

 

The committee was briefed that financial adviser Alvarez & Marsal had completed due diligence, after which the restructuring plan and transaction structure were approved by the Privatisation Commission Board and the Cabinet Committee on Privatisation.

 

The Expression of Interest process for Faisalabad Electric Supply Company (Fesco) has been completed, with 10 parties pre-qualified, while 11 expressions of interest for Gujranwala Electric Power Company (Gepco) are under evaluation. The process for Islamabad Electric Supply Company (Iesco) was also recently completed.

 

The committee also reviewed progress on the privatisation of Pakistan International Airlines (PIA). A consortium led by Arif Habib had submitted the highest bid of Rs135 billion for a 75% stake against a reference price of Rs100 billion. Management control was transferred after First Completion on June 29, 2026, while the successful bidder has indicated its intention to acquire the remaining 25% stake, subject to contractual requirements.

 

Separately, the committee was informed that outstanding Postal Life Insurance Corporation claims stood at Rs15.5 billion as of June 2026, covering around 55,450 claims. Against an additional funding requirement of Rs8.45 billion, only Rs3 billion had been released.