Pakistan clears restructuring of three Discos

Pakistan's Privatisation Commission Board has approved restructuring plans for three major power distribution companies Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), and Islamabad Electric Supply Company (IESCO) to advance their privatisation amid strong investor interest.

 

The board recommended that the Cabinet Committee on Privatisation (CCoP) endorse the restructuring plans, which are based on audited financial statements as of 31 March 2026. The initiative aims to maximise government value while creating commercially viable entities that are more attractive to private investors.

 

Under the proposed framework, the government will establish a special-purpose vehicle (SPV) to separate selected assets and liabilities of the three Discos, streamlining the privatisation process. Expressions of interest are due by 7 August for FESCO, 21 August for GEPCO, and 7 September for IESCO.

 

Separately, the board formed two transaction committees to oversee the outsourcing of Islamabad, Lahore, and Karachi airports. It also approved RSM Avais Hyder Liaquat Nauman as auditor for completed privatisation transactions during FY2025-FY2027, while BDO Ebrahim & Co will conduct annual audits of the Privatisation Commission's financial statements for FY2026-FY2028.