DISCOs privatization in Pakistan moved a step forward on Thursday, October 22, when the Privatization Commission (PC) Board approved measures covering three state-linked entities: the electricity distribution companies IESCO and FESCO, the Zarai Taraqiati Bank Limited (ZTBL), and State Life Insurance Corporation of Pakistan (SLIC). The meeting was chaired by Muhammad Ali, Adviser to the Prime Minister on Privatisation and Chairman of the Privatisation Commission. The Board said the programme aims to attract credible domestic and international investment and to improve operational efficiency and service delivery through transparent and competitive transactions.
Electricity distribution sale moves to the next stage
The Board approved the prequalification of 10 Interested Parties for the privatization of the Islamabad Electric Supply Company (IESCO). Prequalification is a screening step that decides which bidders may take part in the later stages of a sale. The list includes three Turkish energy companies, Engro Energy Limited, and several consortia that bring together Pakistani business groups.
The 10 parties will now get access to a Virtual Data Room, a secure online store of company documents, to carry out detailed buy-side due diligence. Due diligence is a close review of a company's records by prospective buyers before they commit. IESCO is part of the first batch of DISCOs identified for privatization, along with the Faisalabad Electric Supply Company (FESCO) and the Gujranwala Electric Power Company (GEPCO).
In a separate decision, the Board approved adding consortium members to Artistic Milliners (Pvt) Limited, a prequalified party for FESCO's privatization. The Board said the arrangement would let the consortium take part across the Batch-I DISCO transactions, subject to the applicable requirements.
ZTBL and State Life steps
For ZTBL, the Board approved modifications to the transaction structure and restructuring plan. The Board said the changes follow the Prime Minister's directions that ZTBL keep its focus on agricultural and farmer financing after privatization. This is meant to preserve the bank's role in supporting Pakistan's farm sector.
For State Life, the Board approved the selection of a consortium led by Deutsche Bank as the top-ranked Interested Party to be appointed Financial Adviser for the privatization of SLIC. A financial adviser helps the government plan and manage a sale. The Board also constituted a Negotiation Committee to finalize the Financial Advisory Services Agreement (FASA) with the consortium.
Aasan alfaaz mein
PC Board ne Thursday ko DISCOs, ZTBL aur State Life ki privatization ke liye kai faisle manzoor kiye. IESCO ke liye 10 parties agle marhale mein jaayengi, jabkay ZTBL ko kisanon aur zarai qarz par tawajjo rakhne ka hukum diya gaya hai. State Life ke liye Deutsche Bank ki agwai wali consortium ko financial adviser ke taur par sab se behtar qarar diya gaya hai. Bijli ke bill, bank ke qarz ya insurance ke asar par abhi tafseel baqi hai.
