The Privatization Commission on Tuesday announced the privatization the country’s major electricity distribution companies (Discos)
According to sources, the three companies which are to be sold to private investors are Faisalabad Electric Supply Company (Fesco), Gujranwala Electric Power Company (Gepco), and Islamabad Electric Supply Company (Iesco).
The privatization aims to improve service quality through private-sector engagement practices. The plan was supposed to be completed within five years but failed to take off over the following three decades.
The privatization move is part of the government’s strategy to bring reforms in the country’s economic arena aimed at strengthening service delivery, attracting foreign and domestic investment.
About the process the relevant authority said that online investor briefing will also be conducted jointly by the Privatization Commission and the financial adviser to highlight investment opportunities, transaction structure, and procedural requirements for interested investors.
Further, the Privatization Commission will engage with potential investors and power sector stakeholders to refine the existing Disco tariff structure, multi-year tariff (MYT) regime, business model and framework for competitive suppliers.
The commission said the government viewed the privatisation of power distribution companies as a critical step toward modernising the energy sector, reducing inefficiencies, encouraging private-sector participation and enhancing consumer service standards.
The initiative is expected to contribute positively to fiscal sustainability, energy sector reforms and long-term economic stability, it said.
The Privatization Commission emphasized that Pakistan planned on creating and enabling an investment environment supported by policy continuity, regulatory transparency and institutional reforms.
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