Pakistan is courting investors from Saudi Arabia, China and Türkiye as it moves ahead with the privatization of three state-owned electricity distribution companies, Prime Minister Shehbaz Sharif’s office said on Tuesday, marking a key step in the country’s efforts to reform its troubled power sector.
The move comes as Pakistan seeks to reduce the financial burden of loss-making state-owned enterprises and address longstanding inefficiencies in the electricity sector, which has been plagued by power theft, transmission losses, weak bill recovery and a growing circular debt crisis. Power-sector reform has been a recurring priority of successive governments and has featured prominently in discussions with the International Monetary Fund (IMF), which is supporting Pakistan under a $7 billion loan program.
On Tuesday, Sharif chaired a meeting to review progress on the privatization of electricity distribution companies, commonly known as DISCOs, in which he was briefed that investor roadshows aimed at attracting potential buyers would begin this month as part of preparations for the sale process.
“International road shows are also being organized for investors from Saudi Arabia, Türkiye and China,” the PM’s office said in a statement.
In the first phase, Islamabad Electric Supply Company (IESCO), Gujranwala Electric Power Company (GEPCO) and Faisalabad Electric Supply Company (FESCO) will be privatized, the statement said. Expressions of interest for the three companies have already been published in domestic and international newspapers, while the Cabinet Committee on Privatization had approved the transaction structure for the sales.
FESCO, GEPCO, and IESCO serve more than 14 million consumers across Punjab and the Islamabad region. They operate electricity distribution networks spanning major industrial, commercial, and urban centers, making them key assets in Pakistan’s power sector.
Pakistan has struggled for years to privatize major state-owned enterprises despite repeated reform pledges, with previous attempts often delayed by political, legal and regulatory hurdles.
The government argues that private-sector participation can improve efficiency, service delivery and financial performance in sectors that have generated persistent losses for the public purse.