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Iesco, Fesco, Gepco to be ready for privatisation by year-end

Iesco, Fesco, Gepco to be ready for privatisation by year-end

Web Desk
Jul 24, 2025

ISLAMABAD: The federal government is preparing to privatise three major power distribution companies: Iesco, Fesco and Gepco, by the end of December.

In a meeting of the National Assembly Standing Committee on Economic Affairs, chaired by Muhammad Atif Khan, Additional Secretary for Power Division, Mehfooz Bhatti, said the privatisation process for these three Discos is already at an advanced stage.

Due diligence is nearly complete, and a financial advisor has been hired to steer the transaction. Expressions of Interest (EOIs) will be invited later this year, and the terms of the sale agreement are also being finalised, he added.

Bhatti noted that the Power Division is working with the Privatisation Commission to eventually privatise all 10 distribution companies. However, lawmakers raised questions over the policy of only targeting the more efficient utilities, warning it could leave the underperforming ones in government hands indefinitely, worsening operational and financial issues.

Committee chairman Atif Khan criticised the freeze on hiring in these Discos, saying people in his constituency suffer due to staff shortages. “In areas stretching hundreds of kilometres, there’s only one lineman available,” he said.

Bhatti clarified that no restrictions have been placed on necessary hiring. MNA Sher Ali Arbab, however, noted that while 80,000 positions remain vacant across the 10 Discos, the prime minister has only allowed hiring 20,000 to 25,000 workers.

The Power Division also gave an overview of the energy mix, stating Pakistan’s installed capacity stands at 39,952 MW. Of this, 54 per cent comes from fossil fuels and 46 per cent from clean energy. Members expressed concern over the overreliance on fossil fuels and the growing burden of capacity payments for 7,000 to 8,000 MW of unused surplus electricity.

The committee also criticised the federal budget’s allocation for Khyber Pakhtunkhwa, calling it unfair compared to smaller regions like Gilgit-Baltistan. KP has been allocated only Rs30.8 billion in development funds, compared to Rs209.6 billion for Balochistan and Rs145.9 billion for Sindh.

Separately, the Economic Affairs Division said it is pursuing legal reforms for regulating foreign contributions and has sought cabinet approval for the proposed “Foreign Contributions (NGOs and NPOs) Regulation Act, 2025.”