The federal government has decided to auction outdated and non-functional power plants on May 19. These plants are owned by four public sector generation companies under GENCO Holding Company Limited. The decision was made under Prime Minister Shehbaz Sharif’s directive to speed up power sector reforms and remove financial burdens from the national exchequer.
The auction will take place at the GENCO Holding Company office in Islamabad. It will be held from 9:00 a.m. to 5:00 p.m. All four state-owned companies will send their representatives to participate in the event. These companies are known to have several old and inactive plants that have been out of service for years, consuming resources without producing electricity.
Officials have assured that the auction process will be fully transparent and competitive. To make sure the process is fair, the government has invited independent observers, media, and stakeholders to attend. This open approach is intended to build public trust in the government’s privatization and reform plans.
Selling these old plants is a key part of the government’s strategy to improve the energy sector. The goal is to remove inefficient assets and shift focus to cleaner, more modern, and cost-effective energy solutions. Officials also believe that this step could attract private investment and reduce losses in power generation.
This auction marks another step in Pakistan’s broader energy sector reform plan. The government has promised more changes in the future, including improving governance in state-owned companies and reducing circular debt. If successful, the auction could set a model for future privatization efforts.