KARACHI (Web Desk) - The federal government plans to issue Expressions if Interest (EoIs) for the privatisation of state-owned power distribution companies (DISCOs) in January next year, Privatisation Adviser Muhammad Ali said on Thursday, as officials expect investors from Türkiye to show interest.
DISCOs, which handle billing, recoveries and grid maintenance, have long suffered from corruption and political interference.
Pakistan has turned to private entities to manage these companies, with Finance Minister Muhammad Aurangzeb saying nearly 90 percent of DISCO boards are now chaired by private-sector professionals to ensure better governance and gradually improve recoveries. Prime Minister Shehbaz Sharif’s government plans to privatize three DISCOs, the Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO) and Gujranwala Electric Power Company (GEPCO).
“We are publishing the EoIs (Expressions of Interest) for investors in January,” Ali, who also chairs Pakistan’s Privatization Commission, told the media.
“Right now, we are finalizing their restructuring plan and transaction structure.”
In the second phase of the privatization of DISCOs, the government will divest its shareholding from Hyderabad Electric Supply Company (HESCO) and Sukkur Electric Power Company (SEPCO) firms.
Pakistan’s Privatization Commission appointed Raiffeisen Investment as its financial adviser for the privatization of HESCO and SEPCO last month. Raiffeisen Investment is a leading advisory firm in Central and Eastern Europe.
Local media recently reported that Pakistan has sought experienced international private investors, particularly from Türkiye, to take part in the upcoming privatization of its DISCOs.