Domestic, foreign investors show interest in Fesco privatisation: privatisation commission

Pakistan's Privatisation Commission (PC) announced a robust response from both local and international investors for the privatization of Faisalabad Electric Supply Company (Fesco). The commission received 12 expressions of interest (EOIs) from prospective buyers aiming to acquire between 51% and 100% of Fesco's stake, along with management control.

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This is an important milestone in the privatisation of Discos. The strong response to Fesco reflects investor confidence in the potential of Pakistan’s electricity distribution sector and in the government’s commitment to a transparent, competitive and professionally managed process.

The bids came from three Turkish companies: Aktor Elektrik Enerji Yatırımları San. ve Tic. A.Ş., Genvera Enerji A.Ş. (Celik Group), and Cengiz Enerji Sanayii ve Ticaret A.Ş. One Chinese investor, Jiang Xi Electric Power Construction, also submitted an EOI. Eight Pakistani groups, including Engro Energy Limited, Sapphire Fibers Limited, Hub Power Holdings, Lucky Cement, Shirazi Investments (Pvt) Limited (Atlas Group), Maple Leaf Cement and Kohinoor Textile, Nishat Mills Limited and Pak Elektron Ltd, and Artistic Milliners (Private) Limited and K-Electric Limited, participated in the bidding process.

Muhammad Ali, PC chairman and advisor to the prime minister on privatization, welcomed the significant investor interest, highlighting it as a key milestone for the privatization of electricity distribution companies (Discos). He stated that the strong response reflects investor confidence in Pakistan's power distribution sector and the government's commitment to a transparent process. The PC plans to engage with prequalified investors for due diligence and to discuss the post-privatization framework.

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The privatisation of Discos would “improve operational efficiency, modernise distribution infrastructure, strengthen customer service, reduce losses and support a more financially sustainable power sector”.

The privatization of Discos is expected to enhance operational efficiency, modernize infrastructure, improve customer service, reduce losses, and foster a more financially stable power sector. These improvements are anticipated to lead to more competitive electricity distribution and affordable, reliable power for consumers. Fesco is part of the first batch of Disco privatizations, alongside Gujranwala Electric Power Company (GEPCO) and Islamabad Electric Supply Company (IESCO).

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Over time, these measures will help create the conditions for more competitive electricity distribution and affordable, reliable power for consumers.