Govt approves restructuring plan for FESCO, GEPCO, IESCO

The Cabinet Committee on Privatisation has approved a restructuring plan covering three electricity distribution companies: FESCO, GEPCO and IESCO. According to Mettis Global, the decision forms part of the government's power-sector reform agenda, which aims to make distribution firms financially sustainable, professionally run and digitally equipped. The session was led by the Deputy Prime Minister, and the step is tied to a wider effort to improve service for homes, commerce and manufacturing across Pakistan.

Under the plan, certain assets, among them every land parcel, plus some liabilities such as pension obligations owed to retirees, will move into a special purpose vehicle owned by the Government of Pakistan. Benefits for current staff will stay with the distribution companies, and receivables and payables between government bodies will be netted off to clear what the state is owed. The arrangement is intended to be fiscally neutral, aiming to add value for the government while keeping the transaction commercially viable.

Muhammad Ali, Advisor to the Prime Minister on Privatisation, said consumers stay shielded by Pakistan's regulatory system, and electricity tariffs will still be fixed under the NEPRA procedure before the government announces them. He also said the reform seeks measurable gains in dependability, productivity and customer service. The three companies together serve more than 14 million consumers across industrial, commercial and city areas, so their performance matters for the wider aim of lowering power tariffs.