Pakistan to fast track privatization of IESCO, FESCO, GEPCO

December 17, 2025 (MLN): Government will move ahead with the privatization of three power distribution companies IESCO, FESCO and GEPCO with expressions of interest expected to be issued shortly, as the government accelerates reforms aimed at creating a competitive electricity market.

Prime Minister Shehbaz Sharif gave the directive while chairing a meeting on the power sector to push for lower inefficiencies reduce losses and attract private investment in electricity distribution and generation.

The privatization drive covers both distribution companies (DISCOs) and generation companies (GENCOs), a key plank of the government’s broader energy reform agenda, according to Ministry of Information and Broadcasting.

The meeting that preparatory measures for the sale of the three DISCOs were underway, while development projects to strengthen the national power distribution system would be completed on a priority basis.

Persistent line losses and circular debt have weighed on Pakistan’s power sector and public finances, making privatization a central policy objective.

The meeting was also briefed on steps to modernize the electricity system, including plans to develop a Battery Energy Storage System through public-private partnerships.

The project has received concept clearance, with a feasibility study in progress, aimed at improving grid stability and integrating variable power sources.

On the infrastructure side, the PC-I for the 500-kilovolt Ghazi Barotha Faisalabad transmission line is at the approval stage.

The technical feasibility work to shift imported fuel-based power plants to Thar coal has been completed, while construction of a railway line to transport Thar coal to power plants is ongoing.

The line losses had declined compared to last year, showing tighter controls and operational measures.

Progress updates were also shared on the power sector roadmap, electricity generation and distribution reforms, and the operationalization of a competitive electricity market.

The meeting was attended by federal ministers Muhammad Aurangzeb, Ahad Khan Cheema and Sardar Awais Ahmed Leghari, along with senior government officials involved in energy, finance and privatization.

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