Privatisation Commission gets ‘overwhelming response’ from investors for Iesco privatisation

The Privatisation Commission announced on Monday that it received an "overwhelming response" from both domestic and international investors interested in acquiring a majority stake in the Islamabad Electric Supply Company (Iesco). Iesco is one of three electricity distribution companies, alongside Faisalabad Electric Supply Company (Fesco) and Gujranwala Electric Power Company (Gepco), all part of Discos Batch-I.

The commission received expressions of interest (EOIs) from three Turkish and seven local investors seeking to acquire between 51 to 100 percent shareholding and management control. Turkish investors included Aktor Elektrik Enerji, Genvera Enerji, and Cengiz Enerji, while local investors consisted of Engro Energy, Artistic Milliners, The Lake City Holdings, Fatima Capital Limited, Din Ventures (Pvt) Limited, Fazal Cloth Mills Limited, Hubco Power Holding, Lucky Cement Limited, Kohat Cement Limited, and Metro Ventures (Private) Limited.

Pakistani investors such as Sapphire Fibres Limited, Novatex Limited, Bestway Cement Limited, and a new consortium led by Hasnaat Brothers Construction Co. (Pvt) Limited also expressed interest. The Privatisation Commission praised the investor community's engagement during roadshows and expressed confidence in Pakistan's power-sector reform agenda.

Commission head Muhammad Ali stated that this marks an important milestone in the privatization of Discos, reflecting investors' confidence in the potential of Pakistan's electricity distribution sector and the government's commitment to a transparent, competitive, and professionally managed process. The commission will now engage constructively with prequalified investors through the due-diligence process and seek alignment on an equitable, transparent, and predictable post-privatization regime.

The objective is to improve operational efficiency, modernize distribution infrastructure, strengthen customer service, and reduce losses to ensure a more financially sustainable power sector, ultimately leading to affordable and reliable power for consumers. Interested parties' EOIs and Statements of Qualification (SOQs) will undergo comprehensive evaluation against prequalification criteria.

Ten investors were prequalified for Fesco, and 11 EOIs were received for Gepco, currently under evaluation for prequalification. The commission emphasized its commitment to an open, transparent, and competitive privatization process in the public interest and in support of the government's broader power-sector reform agenda.