Islamabad: The government has intensified efforts to privatise key electricity distribution companies (DISCOs), with Prime Minister Shehbaz Sharif directing authorities to speed up the process and attract international investors as part of Pakistan’s broader economic reform agenda.
According to Beyond Time News, the prime minister chaired a high-level meeting in Islamabad on Tuesday to review progress on the privatisation programme and emphasized that the transfer of loss-making State-Owned Enterprises (SOEs) to the private sector remains a top government priority.
He instructed officials to maintain complete transparency throughout the process and ensure a strong regulatory framework is in place before and after the transition.
Government Pushes Ahead With Power Sector Reforms
During the meeting, officials briefed the prime minister on developments related to the privatisation of electricity distribution companies.
They informed participants that the first phase of the programme will focus on three major power utilities:
- Islamabad Electric Supply Company (IESCO)
- Gujranwala Electric Power Company (GEPCO)
- Faisalabad Electric Supply Company (FESCO)
According to Beyond Time News, authorities have already published Expressions of Interest (EOIs) for the three companies in both national and international newspapers to attract potential investors.
Officials said the move marks a significant step toward introducing greater private-sector participation in Pakistan’s power distribution network.
Cabinet Approves Transaction Structure
The meeting was also informed that the Cabinet Committee on Privatisation has approved the transaction structure for the sale of the three distribution companies.
This approval allows the government to move forward with the next stages of the process, including investor engagement, due diligence, and bid evaluation.
Officials believe private-sector participation can improve operational efficiency, reduce losses, and strengthen service delivery across the electricity sector.
The government has repeatedly highlighted the financial burden created by underperforming state-owned enterprises and has identified reform as a key component of economic stabilization efforts.
International Roadshows to Attract Foreign Investors
To generate interest among international investors, Pakistan plans to launch a series of investment roadshows this month.
According to Beyond Time News, these promotional events will take place in Saudi Arabia, Türkiye, and China.
Government representatives will meet potential investors, financial institutions, and business leaders to present opportunities in Pakistan’s energy sector.
The outreach campaign aims to showcase ongoing reforms, explain the privatisation framework, and encourage foreign direct investment in the country’s electricity distribution system.
Officials expect the roadshows to strengthen investor confidence and increase participation in the bidding process.
Prime Minister Calls for Transparency
Prime Minister Shehbaz Sharif stressed the importance of transparency and accountability throughout the privatisation programme.
He directed relevant departments to ensure that all procedures comply with legal and regulatory requirements.
The prime minister also emphasized the need to protect consumer interests while improving the efficiency of electricity distribution services.
Government officials believe a clear and predictable regulatory environment will play a critical role in attracting reputable investors and ensuring the long-term success of the initiative.
Senior Leadership Reviews Progress
Several senior government officials attended the review meeting.
Participants included Deputy Prime Minister and Foreign Minister Ishaq Dar, Minister for Law and Justice Azam Nazeer Tarar, Planning Minister Ahad Khan Cheema, Finance Minister Muhammad Aurangzeb, Power Minister Sardar Awais Leghari, Adviser to the Prime Minister Muhammad Ali, and Minister of State Bilal Azhar Kayani.
Senior officials from relevant ministries and departments also participated in discussions regarding the future roadmap for privatisation.
The meeting focused on timelines, investor engagement strategies, regulatory preparations, and measures to ensure smooth implementation.
Why Pakistan Is Privatizing State-Owned Enterprises
Pakistan has been pursuing a comprehensive State-Owned Enterprise reform programme to reduce financial losses, improve governance, and attract investment.
Many public-sector entities have faced operational inefficiencies, mounting debt, and recurring financial challenges over the years.
Economic experts argue that strategic privatisation can help reduce the fiscal burden on the government while encouraging innovation and improved service delivery.
The reform agenda covers multiple sectors, including energy, aviation, banking, and infrastructure.
Officials say the initiative aligns with broader efforts to strengthen economic growth and improve investor confidence.
Power Sector Reform Remains a Key Objective
The electricity sector has long faced challenges related to transmission losses, power theft, revenue collection, and financial sustainability.
Successive governments have introduced reforms aimed at improving performance and ensuring a reliable power supply.
Authorities believe private-sector management can help modernize operations, strengthen governance, and enhance customer services.
The planned sale of DISCOs forms part of a wider strategy to address structural issues within Pakistan’s energy sector.
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Recent Progress in Privatisation Efforts
The government’s latest push follows recent developments in other sectors.
According to Beyond Time News, Pakistan recently completed the sale of a 75 percent stake in Pakistan International Airlines (PIA) for Rs135 billion to a consortium led by the Arif Habib Group.
Officials view the transaction as a major milestone in the country’s privatisation programme.
The government plans to offer the remaining 25 percent stake at a later stage while continuing efforts to restructure the airline and improve operational performance.
Analysts believe successful privatisation transactions could encourage additional foreign investment and support broader economic reforms.
Investors Eye Opportunities in Pakistan
Pakistan’s large consumer market, strategic location, and growing energy demand continue to attract interest from regional and international investors.
The government hopes that reforms in the power sector will create new business opportunities while improving service quality for consumers.
As preparations for the DISCO privatisation process move forward, investors will closely monitor regulatory developments, financial performance indicators, and future policy decisions.
The success of the initiative could play an important role in shaping Pakistan’s investment landscape and supporting long-term economic growth.
FAQs
Which electricity companies will be privatized first?
The first phase includes Islamabad Electric Supply Company (IESCO), Gujranwala Electric Power Company (GEPCO), and Faisalabad Electric Supply Company (FESCO).
Why is Pakistan privatizing DISCOs?
The government aims to improve efficiency, reduce financial losses, attract investment, and strengthen service delivery in the power sector.
Which countries will host investor roadshows?
Pakistan plans to hold investment roadshows in Saudi Arabia, Türkiye, and China.
What did Prime Minister Shehbaz Sharif emphasize during the meeting?
He stressed transparency, accountability, and the establishment of a strong regulatory framework throughout the privatisation process.
How does DISCO privatisation fit into broader reforms?
It is part of Pakistan’s wider State-Owned Enterprise reform programme designed to improve economic performance and attract foreign direct investment.
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