ISLAMABAD: Pakistan’s Privatization Commission announced on Friday that it has received Expressions of Interest (EOIs) from 12 local and international investors, among them Turkish and Chinese companies, for acquiring a stake in the Faisalabad Electric Supply Company (FESCO).
Pakistan invited EOIs from investors seeking to acquire 51 percent to 100 percent stakes in three state-owned electricity distribution companies, including FESCO, in May.
Pakistan has been pushing to implement power sector reforms under an International Monetary Fund-backed economic stabilization program that aims to reduce losses, improving recoveries, and tackle the chronic circular debt that has strained public finances for years.
The Privatization Commission said it received EOIs from three Turkish companies (Aktor Elektrik Enerji Yatırımları San. ve Tic. A.Ş., Genvera Enerji A.Ş., Cengiz Enerji Sanayii ve Ticaret A.Ş.) and one Chinese company (Jiang Xi Electric Power Construction). The local investors who expressed interest included Shirazi Investments (Pvt) Limited, Engro Energy Limited, Nishat Mills Limited and Pak Elektron Ltd., K-Electric Limited, and others.
“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,” said Muhammad Ali, adviser to the prime minister on privatization and chairman of the Privatization Commission.
Ali said the commission looks forward to engaging constructively with the prequalified investors through the due-diligence process and discussing the features of the post-privatization regime.
“The privatization is intended to improve operational efficiency, modernize distribution infrastructure, strengthen customer service, reduce losses and support a more financially sustainable power sector,” the statement added.
The Privatization Commission said the EOIs and Statements of Qualification (SOQs) submitted by interested parties will now undergo a comprehensive evaluation against the approved prequalification criteria.
It added that 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.
FESCO is among the three power distribution companies that Pakistan has approved for privatization. The other two are the Gujranwala Electric Power Company (GEPCO) and Islamabad Electric Supply Company (IESCO). Deadlines for submission of EOIs for GEPCO and IESCO are August 21, 2026, and September 7, 2026, respectively.
Pakistan undertook the landmark privatization of its former national flag carrier Pakistan International Airlines in December 2025. Experts called it a breakthrough in the government’s long-stalled privatization drive.
Pakistan’s distribution companies have long struggled with high transmission losses, weak bill recovery and inefficiencies, all contributing to the country’s growing circular debt crisis.
