ISLAMABAD – A major battle for one of key power distribution companies quietly begun. IESCO is now drawing serious interest…

Ten domestic and international investors expressed interest on Monday in acquiring a controlling stake in Islamabad Electric Supply Co. (IESCO), the Privatisation Commission said. The expressions of interest mark a new phase in Pakistan's IESCO privatization, part of a wider push to improve the financial and operational performance of the power distribution sector. #### What stake in IESCO are investors seeking? The investors are seeking between 51% and 100% of IESCO's shares along with management control. The expressions of interest are the first major step towards the planned transfer of the state-owned utility to private management. The commission will now assess the expressions of interest and Statements of Qualification against approved prequalification criteria. Pakistan's power distribution sector has long faced high distribution losses, weak bill recoveries and financial pressures. #### Which companies have expressed interest in IESCO? Three Turkish energy companies submitted expressions of interest: Aktor Elektrik Enerji Yatırımları San. ve Tic. A.Ş., Genvera Enerji A.Ş. and Cengiz Enerji Sanayii ve Ticaret A.Ş. Pakistani companies expressing interest included Engro Energy Ltd., Sapphire Fibers Ltd., Novatex Ltd. and Bestway Cement Ltd. Consortia also submitted expressions of interest. One is led by Artistic Milliners and includes Lake City Holdings, Fatima Capital Ltd., Din Ventures (Pvt.) Ltd. and Fazal Cloth Mills Ltd. Another is led by Hub Power Holding Ltd. and includes Lucky Cement Ltd., Kohat Cement Ltd. and Metro Ventures (Pvt.) Ltd. A third consortium is led by Hasnaat Brothers Construction Co. (Pvt.) Ltd. and includes Dhilal Holding Group, Pak Steel, Bio-Labs (Pvt.) Ltd. and Farid Steel Casting (Pvt.) Ltd. The Privatisation Commission said the participation of Turkish investors and major Pakistani business groups reflected continued interest in the transaction following investor roadshows in Pakistan and abroad. #### What happens next in the IESCO privatisation? Applicants that meet the requirements will be prequalified and invited to the next stage. They will then gain access to a virtual data room for detailed due diligence. "This is an important milestone in the privatization of DISCOs," said Muhammad Ali, adviser to the prime minister on privatisation and chairman of the Privatisation Commission, in a statement. He said the response to the IESCO transaction demonstrated investor interest in Pakistan's electricity distribution sector and the government's commitment to a transparent and competitive process. According to the commission, the government aims to improve operational efficiency, modernise distribution infrastructure, strengthen customer services and reduce distribution losses through the transaction. The reforms are also intended to support a more financially sustainable electricity sector and improve the reliability and affordability of power supplies over time. #### Which other power distributors are being privatised? IESCO is one of three distribution companies in the first phase of the government's DISCO privatisation programme. The other two are Faisalabad Electric Supply Co. (FESCO) and Gujranwala Electric Power Co. (GEPCO). The commission said 10 parties had already been prequalified for FESCO, while 11 expressions of interest had been received for GEPCO and were being evaluated. Pakistan has been pursuing privatization and structural reforms in the power distribution sector as persistent losses, weak collections and financial constraints have weighed on the wider electricity industry. The commission said it remained committed to an open, transparent and competitive process as part of the federal government's broader power-sector reform agenda.

ISLAMABAD: The Privatisation Commission on Monday said it received an “overwhelming response” from domestic and international investors for the privatisation of Islamabad Electric Supply Company (Iesco). Iesco is among the three electricity distribution companies in Discos Batch-I, alongside Faisalabad Electric Supply Company (Fesco) and Gujranwala Electric Power Company (Gepco). In a statement on Monday, the commission said it received expressions of interest (EOIs) from three Turkish and seven local prospective investors seeking to acquire 51 per cent to 100pc shareholding in Iesco, along with management control. The Turkish investors are ⁠Aktor Elektrik Enerji, ⁠⁠Genvera Enerji and ⁠⁠Cengiz Enerji — all of whom had also expressed interest in Gujranwala Electric Power Company (Gepco). The local investors include ⁠Engro Energy; a consortium comprising ⁠Artistic Milliners, The Lake City Holdings, Fatima Capital Limited, Din Ventures (Pvt) Limited and Fazal Cloth Mills Limited; along with a consortium led by Hubco Power Holding and including Lucky Cement Limited, Kohat Cement Limited and Metro Ventures (Private) Limited. > Pakistani investors also include ⁠⁠Sapphire Fibres Limited,⁠ Novatex Limited, ⁠Bestway Cement Limited and a new consortium comprising Hasnaat Brothers Construction Co. (Pvt) Limited, Dhilal Holding Group, Pak Steel, Bio-Labs (Pvt) Limited and Farid Steel Casting (Pvt) Limited. Most of the investors have also submitted their EOIs for the privatisation of Faisalabad and Gujranwala power companies. One new investor consortium has emerged for Iesco led by Hasnaat Brothers Construction. The Privatisation Commission welcomed the investor community’s extensive engagement during the domestic and international roadshows, as well as their confidence in Pakistan’s power-sector reform agenda. “This is an important milestone in the privatisation of Discos. The strong response received for Iesco reflects that investors have confidence in the potential of Pakistan’s electricity distribution sector and in the Government’s commitment to a transparent, competitive and professionally managed process,” said commission head Muhammad Ali, also the adviser to the prime minister on privatisation. The commission said it would now be engaging constructively with the prequalified investors through the due-diligence process and to seek alignment on an equitable, transparent and predictable post-privatisation regime. It added that the process was intended to improve operational efficiency, modernise distribution infrastructure, strengthen customer service, and reduce losses to support a more financially sustainable power sector, which over time will lead to more affordable and reliable power for consumers. The EOIs and statements of qualification (SOQs) submitted by the interested parties will now undergo a comprehensive evaluation against the approved prequalification criteria. Applicants meeting the prescribed requirements will be prequalified and invited to the next stage of the transaction, where they will be granted access to the Virtual Data Room (VDR) to undertake detailed buy-side due diligence. Ten interested parties have been prequalified for Fesco, whereas 11 EOIs were received for Gepco, which are currently under evaluation for prequalification. The commission said it would ensure an open, transparent and competitive privatisation process, undertaken in the public interest and in support of the government’s wider power-sector reform agenda.

Ten domestic and international investors have expressed interest in acquiring 51-100% shareholding of electricity distribution company

The Privatisation Commission on Monday said it had received expressions of interest (EOIs) from 10 domestic and international investors for…

The Cabinet Committee on Privatisation (CCoP) has approved a restructuring plan for the first batch of electricity distribution companies, covering Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO) and Islamabad Electric Supply Company (IESCO), as part of wider power-sector reforms. The meeting, chaired by the Deputy Prime Minister, approved a plan aimed at making the distribution companies financially sustainable, professionally managed, digitally enabled and more consumer-focused. Under the plan, selected assets, including land parcels, and certain liabilities, including post-retirement benefits of already retired employees along with related funds, will be transferred to a government-owned Special Purpose Vehicle (SPV). Retirement benefits of current employees will remain with the respective DISCOs. Inter-governmental receivables and payables will also be netted off to settle government receivables, according to the Privatisation Commission. The commission said the restructuring plan was fiscally neutral and designed to enhance value for the government while ensuring the viability of future transactions. Advisor to the Prime Minister on Privatisation Muhammad Ali said consumers would remain protected under Pakistan’s regulatory framework, with electricity tariffs continuing to be determined through the applicable National Electric Power Regulatory Authority (NEPRA) process and notified by the government. He said the reform process would seek measurable improvements in reliability, efficiency and customer service. FESCO, GEPCO and IESCO collectively serve more than 14 million consumers across major industrial, commercial and urban centres, making improvements in their performance central to efforts to strengthen electricity services and support economic competitiveness. The government said service continuity would remain a priority during the reform process, while employee interests would be addressed in accordance with applicable laws and transaction arrangements. The approval marks a significant step in the government’s efforts to modernise electricity distribution companies and address longstanding structural challenges in the power sector. Read Also

Pakistan's Privatisation Commission has extended the deadline for investors to submit expressions of interest in the privatization of Islamabad Electric Supply Company Ltd. (IESCO) to September 21, 2026. The commission said Friday the extension would give local and international investors more time to conduct due diligence. #### When is the new deadline for IESCO privatisation bids? Interested investors must submit their expressions of interest for IESCO by 4 p.m. Pakistan time on September 21, 2026. All other terms and conditions of the privatisation process remain unchanged, the commission said, and the extension is intended to encourage broader participation in a competitive and transparent process. #### Which power companies are being privatised in Pakistan? The move is part of the government's broader privatisation programme covering three state-owned power distribution companies. Pakistan is seeking private-sector participation through the sale of 51 percent to 100 percent of the share capital, along with management control, in Faisalabad Electric Supply Company, Gujranwala Electric Power Company and IESCO. #### Why did Pakistan extend the IESCO EOI deadline? The commission said the extension would allow prospective investors additional time to complete technical, financial and other due diligence before submitting their proposals. The government has been pursuing power-sector reforms, including private-sector participation in electricity distribution companies, as part of efforts to improve operational efficiency and ease the financial burden associated with state-owned enterprises. Further information and the relevant expression-of-interest documents are available through the Privatisation Commission.