Following the privatization of Pakistan International Airlines (PIA), the government has announced plans to privatize electricity distribution companies, starting with Gujranwala Electric Power Company (GEPCO) and Faisalabad Electric Supply Company (FESCO). This marks the first phase in a broader strategy to involve the private sector in Pakistan’s energy distribution.
Reports indicate that Letters of Interest (LoIs) will be issued soon, inviting private firms to participate in the process. The government aims to complete the privatization within the current fiscal year, signaling a strong commitment to reforms in the energy sector. The move is expected to improve efficiency, reduce losses, and enhance service delivery to consumers, while also generating revenue for the state.
The Privatisation Commission is reviewing restructuring plans and various transaction options to ensure smooth implementation. At the same time, the privatization of IESCO has been put on hold, with authorities citing the need for further planning and evaluation before moving forward.
To oversee and fast-track the process, a high-level steering committee has been formed. This committee will coordinate between relevant departments, manage stakeholder engagement, and address regulatory and operational challenges during the privatization process.
Experts suggest that privatizing distribution companies could improve financial health, attract investment, and reduce dependency on government funding. However, they caution that careful planning is needed to ensure transparency and to protect the interests of consumers.
The privatization of GEPCO and FESCO represents a major step in Pakistan’s energy sector reforms, following the precedent set by PIA. If executed effectively, it could reshape electricity distribution and boost efficiency across the country.
