Pakistan Plans To Sell Up To 100% Stakes In Power Discos

The government is preparing to divest between 51% and 100% of its shareholding in each power distribution company (Disco), along with management control, under the privatisation structure approved by the relevant authorities.

The development was shared with the National Assembly Standing Committee on Privatisation, chaired by MNA Farooq Sattar, which reviewed progress on the proposed privatisation of Discos and Pakistan International Airlines Corporation Limited (PIACL), along with pending claims involving Postal Life Insurance.

Officials informed the committee that financial adviser Alvarez & Marsal had completed the due diligence process for Disco privatisation. Following the assessment, the restructuring plan and transaction framework were approved by the Privatisation Commission Board and the Cabinet Committee on Privatisation (CCoP).

Under the approved arrangement, the government will divest a stake ranging from 51% to 100% in each Disco, with management control also transferred as part of the transactions.

The expression-of-interest stage has progressed for several companies. Ten parties have been pre-qualified for Faisalabad Electric Supply Company (FESCO), while 11 expressions of interest or statements of qualification submitted for Gujranwala Electric Power Company (GEPCO) are currently being evaluated. The process for Islamabad Electric Supply Company (IESCO) was completed on September 7, 2026.

The committee stressed that the privatisation process should remain transparent and competitive, with appropriate valuations and reserve prices. It also called for effective regulation and oversight by the National Electric Power Regulatory Authority (Nepra) after privatisation, along with regular financial and performance audits.

Regarding PIACL, officials told the committee that the successful bidder for the 75% stake intends to exercise its call option for the remaining 25%, subject to the contractual requirements and completion of the second stage of the transaction.

The Arif Habib-led consortium submitted the highest bid of Rs135 billion for the 75% stake against a reference price of Rs100 billion on December 23, 2025. Transaction documents were signed on January 29, 2026, while management control was transferred after the first completion on June 29.

The committee also reviewed outstanding claims at Postal Life Insurance Corporation Limited (PLICL). Its liabilities stood at Rs15.5 billion as of June 2026, covering approximately 55,450 claims.

Officials said only Rs3 billion had so far been released against an additional funding requirement of Rs8.455 billion, leaving a considerable backlog of unpaid claims.

The committee directed authorities to explore additional funding through a supplementary grant in December 2026 to settle as many pending claims as possible, with particular attention to policyholders considered vulnerable.