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Privatisation Panel Recommends Restructuring of Three State Power Distributors

The plan uses audited March 31, 2026 accounts, plus a government-owned SPV carve-out, to make the utilities saleable, triggering investor bids.

Overview

  • The Privatisation Commission Board, which met Tuesday, recommended that the Cabinet Committee on Privatisation approve restructuring plans and schemes of arrangement for FESCO, GEPCO and IESCO.
  • The proposed model relies on audited financial statements through March 31, 2026 and would create a government-owned special purpose vehicle to separate selected assets and liabilities from the three DISCOs.
  • The board set formal deadlines for Expressions of Interest to move the process to market with dates of August 7 for FESCO, August 21 for GEPCO and September 7 for IESCO and said investor interest so far has been encouraging.
  • Separately, the commission formed transaction committees for outsourcing Islamabad, Lahore and Karachi airports, appointed the Asian Development Bank as financial adviser for Islamabad airport, and named RSM Avais and BDO Ebrahim & Co. for transaction and annual audits.
  • If the Cabinet Committee signs off, the transactions would open to competitive bids as part of a wider government push to attract private capital, ease DISCOs' pension and legacy burdens, and meet prior IMF reform commitments.