- August 21, 2026
- Posted by: Tresmark
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The government is preparing to establish a government-owned Special Purpose Vehicle (SPV) with authorised capital of Rs250 billion to facilitate the privatisation of FESCO, GEPCO and IESCO, according to sources in the Power Division.
The proposed SPV will take over selected assets and liabilities from the three power distribution companies, creating a more commercially viable structure for their eventual sale to private investors.
Based on audited accounts as of March 31, 2026, the assets proposed for transfer to the SPV are valued at Rs350.6 billion, while liabilities stand at Rs313 billion, leaving equity of approximately Rs37.6 billion.
The restructuring is intended to maximise value for the government while making the transactions more attractive to domestic and international investors. The Privatisation Commission has already reported strong investor interest in the three DISCOs.
Under the proposed arrangement, FESCO, GEPCO and IESCO will increase their authorised share capital to Rs100 billion, Rs75 billion and Rs125 billion, respectively.
The government is also expected to direct NEPRA to register the new SPV and establish a pension fund for liabilities associated with employees transferred under the restructuring. Pension-related costs would be recovered through tariffs.
The three DISCOs have also been instructed to complete the classification of their land holdings into core and non-core assets by the end of August as part of the restructuring process.
The move represents another step toward restructuring Pakistan’s power distribution sector and attracting private-sector investment into DISCOs.
