The government has been trying for the past three years to privatize loss-making power distribution companies. This time, however, it has assured the International Monetary Fund (IMF) that the privatization process will be completed on schedule to secure the next loan installment.
According to sources, Pakistan aims to meet privatization targets for three major power distribution companies by the end of this year. The companies include Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), and Islamabad Electric Supply Company (IESCO). Successful privatization is expected to improve efficiency, reduce financial losses, and attract private sector investment into the energy sector.
Financial advisors have been appointed for the companies, and initial transaction reports along with detailed analyses regarding the privatization process will be submitted to the Cabinet’s Privatization Committee for review.
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The privatization schedule for the power distribution companies is planned as follows:
- Faisalabad Electric Supply Company (FESCO): by October 2026
- Gujranwala Electric Power Company (GEPCO): by November 2026
- Islamabad Electric Supply Company (IESCO): by December 2026
Officials have warned that missing the privatization targets could endanger Pakistan’s IMF program, threatening the country’s ability to meet its financial obligations. Observers note that timely completion of the process is critical not only for securing the loan installment but also for restoring confidence among investors and international lenders in Pakistan’s energy sector.
