The process of privatization of DISCOs is gaining momentum, with the Financial Advisor currently structuring the transaction. The Cabinet Committee on Privatization (CCoP) is expected to approve the plan before it is launched in the market, according to Business Recorder.
The Minister for Power, Sardar Awais Ahmad Khan Leghari, announced that three major companies—Islamabad Electric Supply Company (IESCO), Gujranwala Electric Power Company (GEPCO), and Faisalabad Electric Supply Company (FESCO)—will be privatized by the end of this year.
Sources confirmed that the World Bank has completed its report on the privatization of DISCOs. This report has been shared with key stakeholders, including the Privatisation Commission. The Power Division has also reviewed and shared details of the actions taken so far.
The Privatisation Commission examined the World Bank report and noted that completing the listed tasks falls under the Power Division, DISCOs, and NEPRA. The deadline for these tasks is set for January 31, 2025. The Financial Advisor will review these actions, conduct due diligence, and suggest any necessary changes. The transaction structure will depend on the progress made, with CCoP approval required before market engagement.
The Privatisation Commission will also assess investor qualifications and eligibility based on input from potential investors during the market outreach phase. Additionally, the Terms of Reference (ToRs) for appointing Human Resource and communication firms by the Power Division are still under review by the Privatisation Commission.
Meanwhile, the Special Investment Facilitation Council (SIFC) has directed the Power Division to complete nine prior actions approved by CCoP. These actions align with World Bank requirements and must be finalized by January 31, 2025. The Privatisation Division is also working to speed up the hiring of the Financial Advisor for the first phase of privatizing DISCOs. Detailed timelines will be presented to SIFC by January 15, 2025.
During a meeting on December 27, 2024, Prime Minister Shehbaz Sharif expressed concern over delays in appointing CEOs for these companies. He also received updates on the privatization process.
In recent correspondence, the Ministry of Privatisation referred to a letter from the Ministry of Energy (Power Division) dated November 29, 2024. This letter outlined the finalized Request for Proposal (RFP), detailing the scope of work and evaluation criteria for hiring a Financial Advisor. The plan was shared with pre-qualified Financial Advisors in August 2024, and the hiring process is now underway.
