Government plans Rs250 billion SPV for FESCO, GEPCO and IESCO privatisation

According to Business Recorder, which cited Power Division sources, the federal government plans to create a state-owned special purpose vehicle with Rs250 billion in authorised share capital. The vehicle would take over chosen assets and liabilities of FESCO, GEPCO and IESCO, forming a commercially viable setup ahead of the privatisation of the three power distribution companies.

Sources put the assets at Rs350.6 billion and liabilities at Rs313 billion, based on audited accounts closing March 31, 2026, which would leave equity of Rs37.6 billion. Separately, the government is set to ask Nepra to register the vehicle along with a pension fund that would absorb carved-out pension liabilities, with those obligations recovered through tariffs.

The Privatisation Commission Board was also informed that investors at home and overseas have expressed interest, following its July 28 recommendation on the restructuring plans. The SECP is expected to waive fees on the SPV setup and on raising the authorised capital of FESCO to Rs100 billion, GEPCO to Rs75 billion and IESCO to Rs125 billion. Deadlines for expressions of interest were set at August 7, 2026 for FESCO, August 21, 2026 for GEPCO and September 7, 2026 for IESCO.