ISLAMABAD: Several domestic and international investors have expressed interest in acquiring a majority stake in one of Pakistan’s electricity distribution companies, in a move the government says reflects growing investor interest in the country’s efforts to reform its troubled power sector.
Pakistan’s Privatization Commission received expressions of interest for a 51% stake in Faisalabad Electric Supply Co (FESCO) from three Turkish companies, one Chinese company and Pakistani business groups, Finance Minister’s Adviser Khurram Schehzad said in a post on X.
The Turkish companies include Aktor Elektrik Enerji Yatırımları San. ve Tic. AŞ, Genvera Enerji AŞ of the Celik Group and Cengiz Enerji Sanayii ve Ticaret AŞ.
Jiang Xi Electric Power Construction submitted an expression of interest from China, according to the government.
The Pakistani investors include major companies from the energy, cement, textile and industrial sectors. The government identified companies including Engro Energy, Sapphire Fibers, Hub Power Holdings, Lucky Cement, Shirazi Investments, Maple Leaf Cement, Kohinoor Textile, Nishat Mills, Pak Elektron, Artistic Milliners and K-Electric.
The adviser stated that eight Pakistani business groups had submitted expressions of interest, while the government’s list names 11 Pakistani companies.
FESCO distributes electricity to millions of consumers in several districts, including Faisalabad, Sargodha and Mianwali. It is one of 10 distribution companies through which Pakistan supplies electricity to consumers across the country.
The interest comes as the government seeks to attract private investment into the power distribution sector.
The Privatization Commission said the response followed six months of engagement with potential investors through domestic and international roadshows.
“This is an important milestone in the privatization of Discos,” Chairman of the Privatization Commission and Adviser to the Prime Minister on Privatization Muhammad Ali said in a statement.
Ali said the response showed investor confidence in the potential of Pakistan’s electricity distribution sector and in the government’s commitment to a transparent and competitive privatization process.
The commission said it will now begin due diligence with the prequalified investors and discuss arrangements for the companies’ operations after privatization.
The government has offered investors the option of acquiring between 51% and 100% of the share capital of electricity distribution companies, with management control, as part of a broader effort to improve efficiency and reduce losses in the power sector.
FESCO is among several distribution companies being considered for privatization, alongside Gujranwala Electric Power Co and Islamabad Electric Supply Co.
