Govt approves restructuring plan for FESCO, GEPCO, IESCO

August 24, 2026 (MLN): The Cabinet Committee on Privatisation (CCoP) has approved the Restructuring Plan for the first batch of electricity distribution companies, covering Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO) and Islamabad Electric Supply Company (IESCO).

This marks a key step in the government's power-sector reform agenda aimed at building distribution companies that are financially sustainable, professionally managed and digitally enabled, said a press release issued.

The meeting was chaired by the Deputy Prime Minister, with the decision forming part of a wider push to better equip DISCOs to serve households, businesses and industry across the country.

Under the approved plan, selected assets, including all land parcels, along with selected liabilities such as post-retirement benefits of already-retired employees and a material amount of associated funds, will be carved out into a Government of Pakistan-owned Special Purpose Vehicle (SPV).

Retirement benefits of serving employees will continue to remain with the DISCOs. Inter-governmental receivables and payables will also be netted off to settle amounts owed to the Government of Pakistan.

The Restructuring Plan has been designed to be fiscally neutral, with the objective of enhancing value for the Government of Pakistan while ensuring the transaction remains commercially viable.

The government noted that consumers, employees, industry and local communities hold a direct stake in the reform process, adding that service continuity will remain a priority throughout.

Employee interests will be addressed in line with applicable law and transaction arrangements, while stakeholders will continue to be kept informed as the process moves into its next stages.

Advisor to the Prime Minister on Privatisation Muhammad Ali said consumers would remain protected under Pakistan's regulatory framework, with electricity tariffs continuing to be determined through the applicable NEPRA process and notified by the government.

He added that the reform process would seek measurable improvements in reliability, efficiency and customer service.

FESCO, GEPCO and IESCO collectively serve over 14 million consumers across major industrial, commercial and urban centres, making their performance central to the broader goal of reducing power tariffs and supporting more competitive electricity services for Pakistan's economy.

The approval of the restructuring plan has been described as a decisive shift from managing legacy constraints toward building modern, accountable and consumer-oriented electricity distribution companies for the future.

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