The government has decided to move forward with the privatization of three major electricity distribution companies, marking another significant step in Pakistan’s ongoing economic reform and restructuring efforts.

The decision was taken during a meeting of the Cabinet Committee on Privatization related to the power sector, chaired by Deputy Prime Minister Ishaq Dar.

According to the official statement issued after the meeting, the committee reviewed key matters regarding the privatization of Islamabad Electric Supply Company, Gujranwala Electric Power Company, and Faisalabad Electric Supply Company.

The committee approved the transaction structure for all three distribution companies, commonly known as DISCOs. Under the approved framework, the government will offer between 50 percent and 100 percent share capital of each company for sale.

Officials stated that the share capital sale will include administrative control of the companies and will remain subject to final approval from the federal cabinet.

The move is being seen as part of broader reforms aimed at improving efficiency, reducing financial losses, and attracting private investment into Pakistan’s struggling power sector.

Energy experts say the privatization process could help improve electricity recovery rates and service delivery, but concerns remain regarding future electricity tariffs, employee job security, and private sector influence over utility operations.

The latest development comes as Pakistan continues efforts to stabilize the economy and fulfill reform commitments linked to international financial agreements.