The International Monetary Fund has urged the government of Pakistan to complete the privatization of its power distribution companies on time, official sources said.
According to sources, the lender told government authorities that it would be unwise to keep extending the running of publicly funded distribution companies. “The Government of Pakistan should privatize the power distribution companies in time,” the IMF stressed.
IMF links distribution losses to budget deficit
The IMF has said that losses at the distribution companies are the major cause of the deficit, sources quoted it as saying. It added that privatization was necessary to remove those losses from the public sector budget.
Also read: IMF agrees to extend Pakistan's 200-unit power subsidy
Sources also said the IMF warned that the deficit would stay out of control until the companies are privatized, and that further delay would bring more losses to the economy.
Three companies targeted for sale in early 2027
Pakistan is advancing a broader overhaul of its electricity distribution system. The government is targeting the privatization of three companies in the first quarter of 2027:
- Faisalabad Electric Supply Company
- Gujranwala Electric Power Company
- Islamabad Electric Supply Company
Additional DISCO transactions are being scheduled later in 2027.
