Domestic, foreign investors show interest in Fesco privatisation: privatisation commission

Why This Matters

Key context: <p>ISLAMABAD: The Privatisation Commission (PC) on Friday said it had received a strong response from domestic and international investors for the privatisation of <a href="https://www.dawn.com/news/1987706">Faisalabad Electric Supply Company</a> (Fesco).</p> <p>The commission said it had received 12 expressions of interest (EOIs) from prospective investors seeking to acquire a 51pc to 100pc stake in Fesco along with management control.</p> <p>The EOIs were submitted by three Turkish investors, one Chinese investor and eight local investors.</p> <p>The three from Turkiye include Aktor Elektrik Enerji Yatırımları San. ve Tic. A.Ş., Genvera Enerji A.Ş. (Celik Group) and ⁠Cengiz Enerji Sanayii ve Ticaret A.Ş.</p> <p>The EOI from China came from Jiang Xi Electric Power Construction.</p> <p>The remaining eight Pakistani groups include Engro Energy Limited, Sapphire Fibers Limited, Hub Power Holdings, Lucky Cement, Shirazi Investments (Pvt) Limited (Atlas Group), Maple Leaf Cement and Kohinoor Textile, Nishat Mills Limited and Pak Elektron Ltd, and Artistic Milliners (Private) Limited and K-Electric Limited.</p> <figure class='media w-full w-full media-- media--embed media--uneven media--tweet' data-original-src='https://x.com/PrivComPakistan/status/2085699818547220543?s=20'> <div class='media__item media__item--twitter '><span> <blockquote class="twitter-tweet" lang="en"> <a href="https://twitter.com/PrivComPakistan/status/2085699818547220543?s=20"></a> </blockquote> </span></div> </figure> <p>The Privatisation Commission welcomed the interest shown by leading business groups in entering the power distribution sector and appreciated the investor community’s extensive engagement during domestic and international roadshows over the past six months.</p> <p>“This is an important milestone in the privatisation of Discos,” said Muhammad Ali, PC chairman and adviser to the prime minister on privatisation.</p> <p>“The strong response to Fesco reflects investor confidence in the potential of Pakistan’s electricity distribution sector and in the government’s commitment to a transparent, competitive and professionally managed process.”</p> <p>He further added that the commission “looks forward to engaging constructively with the prequalified investors through the due diligence process and discussing the contours of the post-privatisation regime”.</p> <p>The privatisation of Discos would “improve operational efficiency, modernise distribution infrastructure, strengthen customer service, reduce losses and support a more financially sustainable power sector”, the PC chairman said.</p> <p>“Over time, these measures will help create the conditions for more competitive electricity distribution and affordable, reliable power for consumers,” he added.</p> <p>In the next stage of the process, the EOIs and Statements of Qualification (SOQs) submitted by interested parties will undergo a comprehensive evaluation against the approved prequalification criteria.</p> <p>Applicants meeting the prescribed requirements will be invited to the next stage of the transaction, where they will be granted access to the Virtual Data Room (VDR) to conduct detailed buy-side due diligence.</p> <p>Fesco is among the three electricity distribution companies in <a href="https://www.dawn.com/news/2001552">Disco Batch-I privatisation</a>, alongside Gujranwala Electric Power Company (GEPCO) and Islamabad Electric Supply Company (IESCO).</p> <p>The three are considered the most viable Discos among the 11 electricity distribution companies originally carved out of the Water and Power Development Authority (Wapda) in 1998.</p> <p>The deadlines for submission of EOIs for Gepco and Iesco are August 21 and September 7, 2026, respectively.</p> <p>PC said it would ensure an open, transparent and competitive privatisation process, undertaken in the public interest and in support of the federal government’s wider <a href="https://www.dawn.com/news/2020772">power-sector reform</a> agenda.</p> This development from dawn.com highlights ongoing changes in the sector.