Pakistan plans to privatise three DISCOs in first quarter of 2027: adviser

Business Recorder · 31/10/2026، 4:56:08 PM

Pakistan plans to privatise three power distribution companies (DISCOs) in the first quarter of 2027, Prime Minister’s Adviser on Privatisation and Chairman of the Privatisation Commission Muhammad Ali has said. The three DISCOs include the Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), and Islamabad Electric Supply Company (IESCO). In an interview, Muhammad Ali said that due diligence for the three companies was already under way, while potential investors had requested additional time to assess the complex transactions, according to a press release issued by the Privatisation Commission. He said the government had initially planned to hold bidding in December, but the process might be delayed slightly, with the target now set for the first quarter of next year. The government has also started work on the privatisation of Hyderabad and Sukkur power distribution companies, with their transactions expected to be completed in the second quarter of 2027. Lahore, Multan, Peshawar and Hazara distribution companies are also part of the government’s privatisation programme, with a target to complete their process in the second half of 2027. Muhammad Ali described the power sector reform as a national security issue, saying high energy costs were undermining industrial competitiveness, exports and economic growth. He said Pakistan needed to reduce electricity tariffs and introduce competition in the power supply market to prevent consumers and industries from shifting away from the national grid. Referring to the experience of K-Electric, he acknowledged that investors had raised concerns about regulatory uncertainty, tariff revisions and the protection of long-term investments. He said the government was working on safeguards to address these concerns, including finalising investment plans and multi-year tariffs before bidding. According to Muhammad Ali, DISCOs would be required to improve their performance through smart metering, te