Key Takeaways
- A consortium led by Nishat Chunian Power Limited has entered the race to privatise Faisalabad Electric Supply Company (FESCO).
- The consortium includes several Nishat Group companies and aims to improve efficiency in Pakistan's energy sector.
- FESCO is part of a broader government plan to privatise three DISCOs, including IESCO and GEPCO.
A consortium comprising several Nishat Group companies has entered the race for the privatisation of Faisalabad Electric Supply Company (FESCO). The development was disclosed by Nishat Chunian Power Limited (NCPL) in a notice to the Pakistan Stock Exchange (PSX) on Thursday.
The consortium, led by NCPL, includes Pakgen Limited, Lalpir Limited, Nishat Power Limited, Nishat Mills Limited, Kohinoor Energy Limited, and Pak Elektron Limited. NCPL has been appointed as the lead member of the consortium to conduct all business and represent it throughout the privatisation process.
In a statement, NCPL clarified that it 'has not assumed any binding obligation in respect of the transaction, which remains subject to pre-qualification by the Privatisation Commission and to all requisite corporate and regulatory approvals.'
FESCO is one of three electricity Distribution Companies (DISCOs) slated for privatisation as part of a broader energy sector reform agenda aimed at improving efficiency, reducing losses, and attracting private investment. The other two DISCOs are Islamabad Electric Supply Company (IESCO) and Gujranwala Electric Power Company (GEPCO).
The Cabinet initially approved the outright privatisation of these three DISCOs in August 2024. Last month, the deadline for Expression of Interest (EOI) submission for FESCO was revised to August 7, 2026.
According to NCPL's notice, 'Nishat Chunian Power Limited obtained the Request for Statement of Qualification as amended or supplemented from time to time (RSOQ) issued by the Privatisation Commission, for the divestment of FESCO through privatisation and the Board of Directors of the company approved participation in the consortium.'
The move is part of a larger strategy by the government to reform Pakistan's energy sector. The privatisation process aims to enhance operational efficiency and attract private investment into the DISCOs, which are currently facing challenges such as high losses and inefficiencies.
While the consortium has entered the race for FESCO, the transaction remains subject to pre-qualification by the Privatisation Commission and all necessary approvals.
