Pakistan plans to privatise three DISCOs in first quarter of 2027: adviser

Pakistan plans to privatise three power distribution companies (DISCOs) in the first quarter of 2027, according to Prime Minister's Adviser on Privatisation and Chairman of the Privatisation Commission Muhammad Ali. The three DISCOs to be privatised are the Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), and Islamabad Electric Supply Company (IESCO).

The government had initially planned to hold bidding in December but has now set the target for the first quarter of next year. Ali described the power sector reform as a national security issue, citing high energy costs that undermine industrial competitiveness, exports, and economic growth. The privatisation process is expected to improve the performance of DISCOs through smart metering, technology adoption, and better recovery, with investors facing penalties for failing to meet performance benchmarks.

The benefits of improved performance would be shared with consumers, and investors would receive returns in Pakistani rupees rather than dollars, linked to inflation and calculated under the capital asset pricing model.

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