Bids for power firms being evaluated

According to Dawn, a National Assembly privatisation committee heard on Thursday that the assessment of bidders for 51 to 100 per cent of each electricity distribution company, together with management control, has reached an advanced stage. Committee chairman Dr Farooq Sattar urged an open, contested and market-driven process, saying success depends on fair valuation, reserve prices, Nepra oversight and periodic audits.

Alvarez & Marsal, the financial adviser to the Privatisation Commission, has completed its due diligence, after which the commission's board and the Cabinet Committee on Privatisation approved the restructuring plan and transaction structure. Ten parties have been pre-qualified for Fesco, while 11 expressions of interest for Gepco are still under review, and the Iesco process was completed recently.

The Arif Habib-led consortium made the highest bid of Rs135 billion for a 75 per cent PIA stake last December, against a reference price of Rs100 billion. First completion on June 29 handed over management control, and the buyer has signalled it will exercise its call option for the remaining 25 per cent. The committee also noted that PLICL policyholder claims stood at Rs15.5 billion up to June 2026, covering about 55,450 claims, with only Rs3 billion of an extra Rs8.45 billion requirement released so far.