CCoP approves restructuring plan for FESCO, GEPCO and IESCO

The Cabinet Committee on Privatisation (CCoP) has approved a restructuring plan for three major electricity distribution companies in Pakistan: Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), and Islamabad Electric Supply Company (IESCO). This move is part of broader power-sector reforms aimed at making these companies financially sustainable, professionally managed, digitally enabled, and more consumer-focused.

The plan involves the transfer of certain assets, such as land parcels, and specific liabilities, including post-retirement benefits of retired employees, to a government-owned Special Purpose Vehicle (SPV). Current employee retirement benefits will remain with their respective distribution companies. Inter-governmental receivables and payables will be netted off to settle government debts.

The CCoP emphasized that the restructuring plan is fiscally neutral, designed to enhance value for the government while ensuring the viability of future transactions. The reforms aim to protect consumers by maintaining electricity tariffs determined through the National Electric Power Regulatory Authority (NEPRA) process. Advisor to the Prime Minister on Privatisation, Muhammad Ali, stated that the reforms would focus on measurable improvements in reliability, efficiency, and customer service.

With over 14 million consumers served collectively, the government prioritized service continuity during the reform process while addressing employee interests in accordance with applicable laws and transaction arrangements. This approval marks a significant step toward modernizing Pakistan's electricity distribution sector and addressing longstanding structural challenges.

Brief written by urgent.news from Business Recorder's own syndicated text. Machine-written — may contain errors; check the original before relying on it.