Pakistan has launched an international investor campaign to privatise three major electricity distribution companies — Islamabad Electric Supply Company, Faisalabad Electric Supply Company, and Gujranwala Electric Power Company.
A government delegation led by Prime Minister’s Adviser on Privatisation Muhammad Ali has begun visits to Türkiye and is also expected to travel to China and Saudi Arabia to market the planned sale of IESCO, FESCO and GEPCO to foreign investors. The campaign comes as Pakistan tries to reduce power-sector losses, improve electricity delivery and attract private capital into one of the country’s most financially stressed sectors.
What Is Pakistan Offering?
The government is offering investors the opportunity to acquire 51% to 100% shareholding in each of the three DISCOs, along with management control. The Privatisation Commission says the transaction is part of Pakistan’s broader reform agenda to improve efficiency, service delivery, private-sector investment and long-term sustainability in the power sector.
The three companies collectively serve more than 14 million consumers across Punjab and the Islamabad region. These are not minor utilities. They cover major industrial, commercial and urban markets, making them among the most attractive power distribution assets in Pakistan.
Why These Three Companies First?
Pakistan is starting with IESCO, FESCO and GEPCO because they are considered comparatively stronger DISCOs.
According to the official investment teaser, FESCO, GEPCO and IESCO are located in northern Pakistan and serve a large consumer base. Their reported 2025 transmission and distribution losses were 9.0% for FESCO, 10.6% for GEPCO and 8.6% for IESCO, far below the average losses of weaker DISCOs. The teaser also highlighted high recovery rates and a strong consumer base as key selling points for investors.
This sequencing is deliberate. By selling the better-performing companies first, the government is trying to create investor confidence before moving toward more difficult companies such as HESCO and SEPCO.
EOI Deadlines for Investors
The Privatisation Commission has formally invited Expressions of Interest from local and international investors. Separate submissions are required for each company.
The current official deadlines are:
| Company | EOI Deadline |
|---|---|
| FESCO | 7 July 2026 |
| GEPCO | 6 August 2026 |
| IESCO | 7 September 2026 |
An online investor briefing has also been arranged by the Privatisation Commission and its financial adviser to explain investment highlights, transaction structure and procedural requirements.
Why Türkiye, China and Saudi Arabia Matter
Pakistan is targeting Türkiye, China and Saudi Arabia because all three have strategic and financial interest in Pakistan’s infrastructure, energy and investment landscape.
China already has major energy exposure in Pakistan through CPEC power projects. Saudi Arabia has been expanding investment interest in Pakistan’s energy, mining and infrastructure sectors. Türkiye has experience in private-sector power distribution and utility management.
The government has also completed domestic investor outreach in seven major Pakistani cities and is expanding the campaign internationally to Saudi Arabia, China, Türkiye, Qatar, Bahrain, Oman and other Middle Eastern markets.
The Chinese IPP Problem Could Complicate the Sale
The biggest challenge may come from the same country Pakistan wants to court: China.
Muhammad Ali has acknowledged that outstanding payments owed to Chinese Independent Power Producers under CPEC could become a major concern for potential investors. Pakistan plans to reassure investors by structuring transactions in a way that protects buyers and allows some outstanding dues to be adjusted against future payments owed to government entities.
This is a serious issue because any investor buying a DISCO will want clarity on receivables, payables, circular debt exposure and payment security. Without that, even attractive assets can become risky.
Will Privatisation Reduce Electricity Bills?
Not immediately.
The government has said the uniform national electricity tariff will continue for now. That means consumers should not expect an instant bill reduction simply because a DISCO changes ownership. However, officials argue that better efficiency, lower losses and improved use of surplus generation capacity could eventually help reduce pressure on electricity prices.
Read more: Pakistan Electricity Prices: A Guide to Tariffs and Billing
The real benefit for consumers would come if private operators reduce theft, improve billing, invest in feeders, modernise meters and cut technical losses. If those improvements happen, the financial burden on the power sector could fall over time.
IMF Pressure Is Also Driving the Reform
Pakistan’s power-sector privatisation is not happening in isolation. It is linked to the broader IMF-backed reform program.
The IMF has said private-sector participation in DISCO management can improve performance, efficiency and governance, while addressing circular-debt drivers and reducing the need for higher tariffs. The IMF report also notes that the first batch of DISCO privatisation — IESCO, GEPCO and FESCO — was delayed after investor feedback, but the government expects to move forward toward finalisation by early 2027.
This makes the current roadshow campaign a key test of Pakistan’s credibility with both investors and lenders.
What Needs to Happen Next
For this privatisation to succeed, Pakistan must offer more than glossy roadshows.
Investors will need:
- Clear tariff rules
- Protection from legacy circular debt
- Transparent balance sheets
- Freedom to improve operations
- Predictable returns in rupees
- Strong regulatory oversight
- Political commitment after the sale
The government has already signaled that it may offer 14–15% rupee-based returns, with performance-based incentives that could push profitability to 18–20%. Investors have also asked for long-term tariff visibility, electricity trading freedom, self-generation rights and broader private-sector participation.
Bottom Line
Pakistan’s global campaign to privatise IESCO, FESCO and GEPCO is one of the most important energy-sector reforms of 2026.
If successful, it could bring foreign investment, improve electricity distribution and create a model for fixing weaker DISCOs. If mishandled, it could become another failed privatisation attempt blocked by circular debt, tariff uncertainty and investor mistrust.
For ordinary Pakistanis, the key question is simple: will private ownership lead to better service and fewer losses — or just another ownership change without real reform?
That answer will depend on how honestly Pakistan fixes the rules before handing over the keys.
FAQs
Which Pakistani power companies are being privatised first?
The first batch includes FESCO, GEPCO and IESCO.
How much of each DISCO is being sold?
The government is offering 51% to 100% shareholding with management control.
Which countries is Pakistan targeting for investors?
Pakistan is targeting investors in Türkiye, China, Saudi Arabia, and other Gulf and regional markets.
Will electricity bills fall after privatisation?
Not immediately. The national uniform tariff will continue for now, but lower losses and better efficiency may reduce pressure on bills over time.
Why is China important in this sale?
China is a major energy investor in Pakistan, but unpaid dues to Chinese CPEC power producers could become a concern for new investors.
What are the EOI deadlines?
FESCO’s deadline is 7 July 2026, GEPCO’s is 6 August 2026, and IESCO’s is 7 September 2026.
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