The government has invited investors to submit bids for the privatization of three major electricity distribution companies as part of efforts to reform Pakistan power sector and reduce mounting circular debt.
According to official documents, the government plans to sell 51 to 100 per cent shares in Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO) and Islamabad Electric Supply Company (IESCO).
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The privatization process will also transfer administrative control of these companies to successful private investors.
Officials have announced separate deadlines for submission of Expressions of Interest (EoIs). The final date for FESCO applications is July 7, 2026, while bids for GEPCO can be submitted until August 6, 2026. Applications for IESCO will remain open until September 7, 2026.
Interested investors will be required to submit a non-refundable fee of Rs1.4 million along with their EoIs.
An online briefing session for potential investors is scheduled to take place on June 3, 2026, via Zoom.
According to official figures, FESCO currently supplies electricity to approximately 5.7 million consumers in central Punjab.
GEPCO serves around 5.1 million customers across Gujranwala, Sialkot and nearby districts, while IESCO provides electricity to nearly 4.1 million consumers in Islamabad, Rawalpindi and parts of Azad Kashmir.
The government views privatization as a strategy to attract investment, improve efficiency and address financial losses in the power sector.
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Pakistan’s energy sector has faced persistent challenges, including transmission losses, weak recoveries and rising circular debt, placing sustained pressure on public finances.
Officials believe private sector participation could improve operational performance and service delivery while reducing the long-term fiscal burden on the government.
The privatization drive forms part of broader economic reforms aimed at restructuring state-owned enterprises and improving financial sustainability.