Key Takeaways
- The Privatisation Commission received over 10 expressions of interest from domestic and international investors for Iesco's privatisation.
- Investors include Turkish companies and local conglomerates, with some also showing interest in Faisalabad and Gujranwala power companies.
- The commission aims to improve operational efficiency and modernise distribution infrastructure through the privatisation process.
The Privatisation Commission has announced an ‘overwhelming response’ from investors for the privatisation of Islamabad Electric Supply Company (Iesco), one of three electricity distribution companies in the Discos Batch-I.
According to the commission, three Turkish companies—Aktor Elektrik Enerji, Genvera Enerji, and Cengiz Enerji—along with seven local investors, have expressed interest in acquiring a 51 to 100 per cent shareholding in Iesco.
Local investors include Engro Energy, a consortium of Artistic Milliners, The Lake City Holdings, Fatima Capital Limited, Din Ventures (Pvt) Limited, and Fazal Cloth Mills Limited, as well as a consortium led by Hubco Power Holding, including Lucky Cement Limited, Kohat Cement Limited, and Metro Ventures (Private) Limited.
Pakistani investors such as Sapphire Fibres Limited, Novatex Limited, Bestway Cement Limited, and a new consortium comprising Hasnaat Brothers Construction Co. (Pvt) Limited, Dhilal Holding Group, Pak Steel, Bio-Labs (Pvt) Limited, and Farid Steel Casting (Pvt) Limited, have also shown interest.
The commission head, Muhammad Ali, also the adviser to the prime minister on privatisation, welcomed the investor community’s engagement, stating, 'This is an important milestone in the privatisation of Discos.'
The process aims to improve operational efficiency, modernise distribution infrastructure, strengthen customer service, and reduce losses, leading to a more financially sustainable power sector.
The EOIs and statements of qualification (SOQs) submitted by the interested parties will now undergo a comprehensive evaluation against the approved prequalification criteria. Applicants meeting the prescribed requirements will be prequalified and invited to the next stage of the transaction.
Ten interested parties have been prequalified for Faisalabad Electric Supply Company (Fesco), while 11 EOIs were received for Gujranwala Electric Power Company (Gepco), currently under evaluation for prequalification.
This is an important milestone in the privatisation of Discos. The strong response received for Iesco reflects that investors have confidence in the potential of Pakistan’s electricity distribution sector and in the Government’s commitment to a transparent, competitive and professionally managed process.
Muhammad Ali, Commission Head, Privatisation Commission, Adviser to the Prime Minister on Privatisation
