Pakistan’s power sector has witnessed a major development as five leading Pakistani business groups have joined hands with Turkish conglomerate Cengiz Holding to pursue the privatisation of three electricity distribution companies.

The strategic joint venture agreement was signed in Istanbul, Türkiye, bringing together major investors interested in acquiring Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO) and Islamabad Electric Supply Company (IESCO).

Former caretaker federal minister Gohar Ejaz attended the signing ceremony.

Major Pakistani groups join Turkish investor

The Pakistani consortium includes Lake City, Fatima Group, Artistic Milliners, DIN Group and Fazal Group. These businesses have experience in several sectors, including textiles, fertilisers, energy, construction and real estate.

The partnership aims to bring international expertise and investment into Pakistan’s electricity distribution sector.

Focus on better electricity services

The proposed venture plans to modernise electricity distribution networks, reduce line losses and improve customer services.

Its priorities include introducing advanced metering systems, digital billing and better financial management. The three companies collectively provide electricity to around 15 million consumers across major industrial and residential areas.

Privatisation process and investment prospects

FESCO, GEPCO and IESCO have faced billions of rupees in transmission and distribution losses during the 2024-25 financial year. The government has therefore moved towards privatisation to improve efficiency and reduce the financial burden on consumers.

According to the Privatisation Commission, Cengiz Enerji and the Pakistani consortium have already featured in the government's investor qualification process. However, signing the joint venture does not mean the companies have been acquired. The partnership must still meet the relevant requirements and complete the competitive bidding process.

Cengiz Holding has experience in electricity generation, distribution, mining and infrastructure. Its reported power generation capacity stands at 5,622 megawatts, while its distribution operations in Türkiye serve more than 9 million consumers.

The combined workforce of the Pakistani groups and their Turkish partner is reported to exceed 145,000 employees.