Pakistan plans to privatise three DISCOs in the first quarter of 2027, Prime Minister’s Adviser on Privatisation and Privatisation Commission Chairman Muhammad Ali said in an interview released on Saturday.
The companies named are the Faisalabad Electric Supply Company (FESCO), the Gujranwala Electric Power Company (GEPCO) and the Islamabad Electric Supply Company (IESCO). Due diligence on the three is already under way. Potential investors asked for more time to study the deals, according to a Privatisation Commission press release summarising the interview.
First three companies and the new timeline
Muhammad Ali said the government had first intended to hold bidding in December. That schedule may slip slightly, and the target is now the first quarter of next year.
Work has also begun on selling the Hyderabad and Sukkur power distribution companies, with those deals expected to finish in the second quarter of 2027. Lahore, Multan, Peshawar and Hazara distribution companies are in the same programme, with completion aimed for the second half of 2027.
He framed power-sector reform as a national security concern, arguing that high energy costs were weakening industry, exports and growth. Pakistan, he said, needs lower electricity tariffs and competition in supply so households and factories do not leave the national grid.
Safeguards, tariffs and worker protections
Drawing on the K-Electric experience, he said investors had raised worries about regulatory uncertainty, tariff revisions and the safety of long-term capital. The government is preparing safeguards, including locked-in investment plans and multi-year tariffs before bids open.
Sold DISCOs would have to raise performance through smart metering, new technology, lower line losses, stronger bill recovery, steadier supply and better load management. Investors who miss benchmarks would face penalties; efficiency gains would be rewarded and shared with consumers.
The Privatisation Commission has drafted a reform paper on tariff structures, investment plans, business activities and a competitive electricity market. After talks with relevant institutions, the Prime Minister and the Steering Committee, the government intends to put the proposals before the public by mid-November.
Those reforms would gradually move away from a uniform electricity tariff by allowing competitive suppliers, while keeping a supplier of last resort for customers who cannot reach the open market. Investor returns would be paid in Pakistani rupees, not dollars, linked to inflation and set under the capital asset pricing model—a standard way of pricing fair returns for risk. He said investors should get a fair return, and consumers should gain from efficiency.
On staff, he said DISCO workers would be protected for a set period in which buyers could not take adverse action or change employment terms, and that employees would remain essential to running distribution after privatisation.
Broader energy sell-off plans
Muhammad Ali said the government is also examining privatisation of Pakistan State Oil (PSO), Sui Southern Gas Company and Sui Northern Gas Pipelines Limited, though strategic parts of PSO could stay under state control. He described a wider programme meant to raise efficiency, bring in investment and tackle deep structural problems in key sectors.
Timeline: what has happened so far
- 31 October 2026: Muhammad Ali says FESCO, GEPCO and IESCO are targeted for privatisation in the first quarter of 2027; due diligence is under way and December bidding may slip.
- By mid-November 2026: Government intends to share power-sector reform proposals with the public after institutional consultations.
- December 2026 (original plan): Bidding for the first three DISCOs had been scheduled; officials now expect a slight delay.
- First quarter 2027: Target window to privatise FESCO, GEPCO and IESCO.
- Second quarter 2027: Expected completion for Hyderabad and Sukkur distribution company transactions.
- Second half of 2027: Target to complete privatisation steps for Lahore, Multan, Peshawar and Hazara distribution companies.
Aasan alfaaz mein
Sarkar ne kaha hai ke pehle teen bijli distribution companies—FESCO, GEPCO aur IESCO—2027 ke pehle teen mahine mein private ki jayengi. Pehle December mein bidding ka irada tha, lekin investors ko zyada waqt chahiye, is liye thori der ho sakti hai. Baad mein Hyderabad, Sukkur aur phir Lahore, Multan, Peshawar aur Hazara ki companies bhi is program mein hain. Sarkar ka kehta hai ke is se system behtar ho, tariff kam ho sakain, aur mulazimein kuch arsay tak mehfooz rahain—lekin asal bill par asar tab clear hoga jab niyam aur rates final honge.
