GEPCO, FESCO Privatisation Planned in Power Sector Reforms

The Privatisation Commission has decided to privatise the Gujranwala Electric Power Company (GEPCO) and the Faisalabad Electric Supply Company (FESCO) as part of the first phase of its power sector reform programme, sources said. However, the specific mode of privatisation has yet to be finalised.

Meanwhile, the proposed privatisation of the Islamabad Electric Supply Company (IESCO), which was also under consideration, has been deferred for the time being, according to a news report.

Letters of Interest (LoIs) for GEPCO and FESCO are expected to be issued by the end of this month, with the government targeting completion of the privatisation process by the end of the current fiscal year. Financial adviser Alvarez & Marsal has already submitted its report, outlining proposed restructuring plans and various transaction structure options.

Following stakeholder consultations, the Privatisation Commission is expected to seek approval from the Privatisation Commission Board and the Cabinet Committee on Privatisation (CCoP) by the last week of January 2026. Subject to CCoP approval, an Expression of Interest (EOI) is likely to be published by the end of the same month.

To fast-track the process, a Steering Committee chaired by Deputy Prime Minister Ishaq Dar has been constituted. The committee, comprising senior officials from the Power Division and the Privatisation Commission, will oversee the privatisation process, streamline timelines, develop a communication strategy to address stakeholder concerns, ensure regulatory compliance, and submit weekly progress reports to the Prime Minister.