Pakistan is advancing the privatization of DISCOs in Pakistan, with three power distribution companies lined up for sale in the first quarter of 2027, Prime Minister’s Adviser on Privatisation and Privatisation Commission Chairman Muhammad Ali said in an interview on Saturday.
The three firms are Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO) and Islamabad Electric Supply Company (IESCO). DISCOs are the state-owned utilities that deliver electricity to homes and businesses in their regions. Ali said due diligence on the trio is already under way, while potential investors have asked for more time to judge the complex deals.
Bidding delayed into early 2027
The government had first planned to hold bidding in December. That timeline may slip slightly, with the target now the first quarter of next year, Ali said, according to a Privatisation Commission press release cited with his remarks.
Work has also begun on privatising the Hyderabad and Sukkur distribution companies, with those deals expected in the second quarter of 2027. Lahore, Multan, Peshawar and Hazara distribution companies remain on the wider programme, with completion aimed for the second half of 2027.
Why the government wants competition
Ali called power-sector reform a national security issue, arguing that high energy costs are hurting industrial competitiveness, exports and growth. He said Pakistan needs lower electricity tariffs and competition in supply so that consumers and industries do not leave the national grid.
Pointing to the K-Electric experience, he said investors have raised worries about regulatory uncertainty, tariff revisions and protection of long-term investments. Officials are preparing safeguards before bidding, including finalising investment plans and multi-year tariffs.
Under the plan he described, privatised DISCOs would have to improve performance through smart metering, new technology, lower electricity losses, better bill recoveries, more reliable supply and stronger load management. Investors who miss benchmarks would face penalties; those who cut losses and raise efficiency would be rewarded, with gains also shared with consumers.
Reforms, returns and worker safeguards
The Privatisation Commission has prepared a reform paper on tariff structures, investment plans, business activities and a competitive electricity market. The government intends to share those proposals with the public by mid-November after talks with relevant institutions, the prime minister and the Steering Committee.
The reforms would gradually move away from a uniform electricity tariff toward a competitive supplier system, while keeping a supplier of last resort for customers who cannot reach competitive suppliers. Ali said investor returns would be paid in Pakistani rupees, not dollars, linked to inflation and calculated under the capital asset pricing model, and that investors must get a fair return while consumers also benefit from efficiency gains.
On jobs, he said the government would protect DISCO workers for a set period during which investors could not take adverse action against staff or change employment terms, and that employees would remain essential to running the network after privatisation of DISCOs in Pakistan.
Ali added that the government is also examining privatisation of Pakistan State Oil (PSO), Sui Southern Gas Company and Sui Northern Gas Pipelines Limited, though strategic activities of PSO could stay under state control, as part of a broader drive to raise efficiency and attract investment.
Timeline: what has happened so far
- Saturday, 31 October 2026: Muhammad Ali says FESCO, GEPCO and IESCO privatisation is targeted for the first quarter of 2027, with due diligence under way.
- December 2026 (earlier plan): Bidding for the three DISCOs had been scheduled; officials now say it may be delayed slightly.
- By mid-November 2026: Reform proposals on tariffs, investment plans and a competitive market are to be shared with the public.
- First quarter 2027: Target window for completing privatisation of FESCO, GEPCO and IESCO.
- Second quarter 2027: Expected completion for Hyderabad and Sukkur distribution companies.
- Second half of 2027: Target for Lahore, Multan, Peshawar and Hazara distribution companies.
Aasan alfaaz mein
Sarkar FESCO, GEPCO aur IESCO teen bijli companies 2027 ke pehle quarter mein private karne ka irada rakhti hai. Pehle December mein bidding sochi gayi thi, lekin investors ko zyada waqt chahiye, is liye timeline thori shift ho sakti hai. Officials ke mutabiq naya nizaam losses kam karne, supply behtar banane aur competition lane ke liye hai. Mulazimeen ke liye kuch arse tak naukrion ki hifazat ka wada bhi kiya gaya hai.
