Pakistan is set to initiate international roadshows this month in China, Saudi Arabia, and Türkiye to draw foreign investment for the privatisation of its state-owned power distribution companies (Discos). This move was confirmed during a high-level review meeting led by Prime Minister Shehbaz Sharif in Islamabad, as part of the country’s broader economic reform efforts aimed at divesting loss-making state-owned enterprises (SOEs).
Prime Minister Sharif emphasized that privatising these underperforming SOEs remains a key government priority. He instructed officials to expedite the privatisation process for the power utilities while maintaining full transparency throughout each phase.
The government has identified three power utilities for the initial phase of privatisation: Islamabad Electric Supply Company, Gujranwala Electric Power Company, and Faisalabad Electric Supply Company. These entities, though profitable, continue to impose a financial strain on the state.
Officials informed the prime minister that Expressions of Interest (EOIs) for these companies have already been published in both domestic and international media outlets. Additionally, the Cabinet Committee on Privatisation has formally approved the transaction frameworks for these entities.
In a significant development, Sharif directed the establishment of a strong, independent regulatory framework to protect consumer interests after the transfer of management to the private sector. This regulatory body will oversee the power sector to ensure accountability and efficiency post-privatisation.
To attract competitive bids, Pakistan is focusing on key bilateral partners who have previously shown interest in the country’s energy, infrastructure, and mining sectors. The international marketing campaign is scheduled to commence later this month, aiming to boost foreign direct investment, reduce fiscal deficits, and alleviate the financial burden on the national exchequer caused by power sector inefficiencies and widespread power theft.
The meeting was attended by Deputy Prime Minister and Foreign Minister Ishaq Dar, Finance Minister Muhammad Aurangzeb, Power Minister Sardar Awais Leghari, and the Prime Minister’s Advisor on Privatisation, Muhammad Ali.
