ISLAMABAD: The Privatisation Commission said Thursday it has received expressions of interest from 12 domestic and international investors for the privatisation of Faisalabad Electric Supply Company, marking a significant step in the government’s power-sector reform agenda.
The commission received bids from three Turkish companies, one Chinese firm and eight Pakistani business groups seeking to acquire between 51% and 100% shareholding in FESCO with management control, according to a press release.
Turkish bidders include Aktor Elektrik Enerji Yatırımları San. ve Tic. A.Ş., Genvera Enerji A.Ş. (Celik Group) and Cengiz Enerji Sanayii ve Ticaret A.Ş. Jiang Xi Electric Power Construction submitted the sole bid from China.
Pakistani bidders include Engro Energy Limited, Sapphire Fibers Limited, a consortium of Hub Power Holdings and Lucky Cement, and Shirazi Investments (Pvt) Limited representing the Atlas Group, according to the commission.
A consortium of Maple Leaf Cement and Kohinoor Textile, Nishat Mills Limited and Pak Elektron Ltd., Artistic Milliners (Private) Limited and K-Electric Limited also submitted bids.
The Nishat Group-led consortium comprises seven members, including Pakgen Limited, Lalpir Limited, Nishat Power Limited, Nishat Chunian Power Limited and Kohinoor Energy Limited, with Pakgen designated as the lead consortium member, according to disclosures to the Pakistan Stock Exchange.
“This is an important milestone in the privatisation of DISCOs,” said Muhammad Ali, Adviser to the Prime Minister on Privatisation and Chairman of the Privatisation Commission. “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.”
The commission will now evaluate the statements of qualification against approved prequalification criteria. Applicants that meet the requirements will be invited to the next stage and granted access to a virtual data room for buy-side due diligence.
The privatisation aims to improve operational efficiency, modernise distribution infrastructure, strengthen customer service, reduce losses and support a more financially sustainable power sector, Ali said.
FESCO is among three electricity distribution companies in Batch-I, alongside Gujranwala Electric Power Company and Islamabad Electric Supply Company. Deadlines for GEPCO and IESCO expressions of interest are Aug. 21 and Sept. 7, respectively.
Prime Minister Shehbaz Sharif has directed authorities to expedite the privatisation process and complete institutional reforms at the commission within one month, according to the Prime Minister’s Office.
The privatisation programme is part of Pakistan’s commitments under an International Monetary Fund agreement requiring the sale of IESCO, GEPCO and FESCO by early 2027.
FESCO serves approximately 5.7 million consumers across central Punjab, including Faisalabad, Jhang, Toba Tek Singh, Chiniot, Sargodha, Mianwali, Khushab and Bhakkar.
