The federal government has revised its privatisation plan for power distribution companies, deciding to offer only Gujranwala Electric Power Company for outright privatisation, Business Recorder reported, citing official sources.
The revised plan was discussed during a meeting chaired by Prime Minister Shehbaz Sharif on December 15, 2025, where the Ministry of Privatisation outlined factors contributing to delays in the process. The Prime Minister was informed that several DISCOs had not fully complied with Conditions Precedent, particularly in relation to the transfer of properties to the Privatisation Commission.
The prime minister directed the commission, Defence Division, Punjab’s chief secretary and the Ministry of Interior, including the CDA, to ensure cooperation in resolving property-related issues.
The Privatisation Commission is now finalising the new transaction structure, with Letters of Intent expected to be issued in January 2026. Islamabad Electric Supply Company and Faisalabad Electric Supply Company will instead be offered to private investors under long-term concession agreements.
Under the earlier framework, GEPCO, IESCO and FESCO were to be privatised in the first phase, while Sindh-based Hyderabad Electric Supply Company and Sukkur Electric Power Company were planned to be offered under a concession model.
Power Minister Sardar Awais Ahmad Khan Leghari was tasked with convening a meeting of relevant stakeholders to address property transfer matters and accelerate the privatisation process. The Privatisation Commission was also instructed to issue Expressions of Interest for the second phase of DISCOs by December 31, 2025.
Under the updated roadmap, transaction advisers will be appointed to structure long-term concessions. In the second phase, Lahore Electric Supply Company, Multan Electric Power Company and Hazara Electric Supply Company are planned for privatisation.
Meanwhile, HESCO, SEPCO and Peshawar Electric Supply Company will be offered under concession arrangements. At the same time, Tribal Areas Electric Supply Company and Quetta Electric Supply Company will initially be retained for performance improvements before being considered for management contracts.
The Privatisation Commission’s adviser, Alvarez & Marsal, has submitted its sectoral due diligence report, which identified multiple structural and regulatory issues. While some have been addressed, others remain pending.