Bids for power firms being evaluated

ISLAMABAD - The National Assembly Standing Committee on Privatisation received an update on Thursday concerning the evaluation of companies interested in acquiring electricity distribution firms. Committee Chair Dr Farooq Sattar emphasized the importance of a transparent, competitive, and market-driven process, highlighting the significance of appropriate valuation, reserve prices, and oversight by Nepra and periodic financial and performance audits.

The committee learned that Alvarez & Marsal had completed due diligence, leading to the approval of restructuring plans and the transaction structure by both the Privatisation Commission Board and the Cabinet Committee on Privatisation. Ten parties were pre-qualified for the Faisalabad Electric Supply Company (Fesco) privatisation, while 11 expressions of interest for the Gujranwala Electric Power Company (Gepco) were currently under evaluation.

Islamabad Electric Supply Company (Iesco) had also completed the expression of interest process. The committee discussed the privatisation of Pakistan International Airlines Corporation Limited (PIACL), noting that the bidding for a 75% equity stake took place on December 23, 2025, with Arif Habib's consortium submitting the highest bid of Rs135bn against the reference price of Rs100bn.

The transaction documents were executed on January 29, 2026, resulting in the transfer of management control, with the successful bidder expressing their intention to exercise the Call Option for the remaining 25% stake. The committee stressed the need for ongoing regulatory oversight, service quality, and compliance with aviation laws and international standards.

Regarding PLICL, liabilities up to June 2026 amounted to Rs15.5bn, covering around 55,450 claims, while an additional funding requirement of Rs8.45bn had only resulted in the release of Rs3bn, leaving a significant backlog.