Pakistan’s power distribution companies have attracted investment interest from China, Qatar, Saudi Arabia, and Türkiye. The development matters because it could accelerate power sector reforms and reduce financial losses. Foreign and local investors are expected to compete for stakes in major electricity distribution companies.
Government officials told a Senate committee that foreign investors would participate alongside local partners in the privatisation process. The federal cabinet has approved the transaction structure for selling between 51 and 100 percent shares of Faisalabad Electric Supply Company, Gujranwala Electric Power Company, and Islamabad Electric Supply Company.
Read more: Pakistan to pitch Discos privatisation in global roadshows
During a meeting chaired by Senator Afnan Ullah, Privatisation Commission officials said international roadshows would be held in China, Türkiye, Saudi Arabia, and Qatar. These events aim to attract investors and showcase opportunities in Pakistan’s power distribution sector. Officials also clarified that investors would not be allowed to purchase more than one distribution company.
According to the commission, expressions of interest for Faisalabad Electric Supply Company can be submitted until July 7. Deadlines for the second and third distribution companies are August 6 and September 7, respectively. The government hopes the process will improve efficiency and reduce the burden of losses on the national exchequer.
Read more: Pakistan’s energy reforms slash DISCO losses
Officials informed the committee that Quetta Electric Supply Company could not currently be privatised because its losses have reached nearly Rs600 billion. They added that distribution companies recorded losses of Rs255 billion by April in the current fiscal year. Last year, losses stood at Rs357 billion, while authorities said the power sector’s circular debt has declined from its previous level of Rs2.3 trillion.