FESCO privatisation moves ahead as 10 parties are cleared
The decision was approved by the Privatisation Commission Board at its 258th meeting in Islamabad. The meeting was chaired by Muhammad Ali, Adviser to the Prime Minister on Privatisation and Chairman of the Privatisation Commission.
The development marks an important step in the government’s plan to transfer selected electricity distribution companies to the private sector.
10 parties qualify for the next stage
The Privatisation Commission said it had received 12 Expressions of Interest (EOIs) from potential buyers for Faisalabad Electric Supply Company, commonly known as FESCO.
After reviewing the applications against the approved criteria, the Financial Adviser recommended 10 parties for prequalification.
The board accepted the recommendation, allowing all 10 parties to move forward in the transaction process.
The approved parties include Aktor Elektrik Enerji Yatirimlari San. Ve Tic, Genvera Enerji, Cengiz Enerji Sanayii Ve Ticaret, Engro Energy Limited and Sapphire Fibres Limited.
Other approved bidders include the Hub Power Holdings Consortium, comprising Lucky Cement, Kohat Cement and Metro Ventures.
Shirazi Investments (Pvt) Limited has also been prequalified. The Maple Leaf Cement Factory Limited Consortium, including Kohinoor Textile Mills, is among the successful applicants.
The Pakgen Limited Consortium has also qualified. It includes Nishat Mills, Nishat Power, Nishat Chunian, Lalpir, Pak Elektron and Kohinoor Energy.
Artistic Milliners (Pvt) Limited completes the list of 10 prequalified parties.
What happens after prequalification?
The 10 parties will now enter the next phase of the FESCO privatisation process. They will receive access to a Virtual Data Room, or VDR, where they can examine detailed information about the company.
This stage is important because potential investors can conduct buy-side due diligence before deciding whether to continue with the transaction.
Due diligence allows interested parties to study a company’s financial position, operations, assets, liabilities and other important business information.
The government has said that the process will be conducted according to approved procedures. It has also stressed the need for transparency and competition while seeking the best possible value from the transaction.
The Privatisation Commission board also approved the reconstitution of its Audit and Risk, Human Resources, Investment and Legal Committees during the meeting.
The committees are expected to support the commission in dealing with financial, legal, administrative and investment-related matters connected with its work.
Government pushes DISCO privatisation
The latest progress comes as the government is trying to speed up the privatisation of electricity distribution companies.
Prime Minister Shehbaz Sharif has previously directed authorities to accelerate work on the transfer of selected DISCOs to private ownership.
The government considers the divestment of loss-making state-owned enterprises a major part of its broader economic reform programme.
During a recent review meeting, the prime minister also stressed that the process must remain transparent and properly regulated.
Officials told the meeting that the first phase of the DISCO privatisation programme would focus on Islamabad Electric Supply Company, Gujranwala Electric Power Company and FESCO.
The inclusion of FESCO in the first phase makes the latest prequalification decision particularly significant. It suggests that the government is moving from planning and expressions of interest toward detailed investor assessment.
Also Read:SECP makes stock market investment faster with digital accounts
Why FESCO matters
FESCO supplies electricity to a large area of Punjab and serves a substantial consumer base across several districts.
For the government, bringing private investors into the distribution sector is aimed at improving operational efficiency, reducing losses and strengthening service delivery.
Electricity distribution companies have faced longstanding challenges, including financial losses, power theft, inefficient operations and difficulties in recovering bills.
The government hopes private-sector participation can improve management and investment while reducing the financial pressure placed on the public sector.
However, the final outcome will depend on how the privatisation process progresses after due diligence. Prequalification does not itself mean that any of the 10 parties has been selected as the final buyer.
The qualified parties will need to continue through the remaining stages under the approved transaction framework.
