Govt targets privatisation of three Discos by first quarter of 2027

The government is targeting the first quarter of 2027 for bidding on Faisalabad, Gujranwala and Islamabad power distributors, after moving back its December 2026 timetable. Privatisation adviser Muhammad Ali said due diligence is ongoing and prospective investors have asked for more time to assess the complex transactions, Profit by Pakistan Today reported.

Hyderabad and Sukkur distributors are slated for privatisation in the second quarter of 2027, while Lahore, Multan, Peshawar and Hazara are planned for the second half of the year. The proposed framework would link investor returns to inflation, require service and efficiency benchmarks, and include penalties for missed targets as well as rewards for reduced losses.

The government is preparing a reform paper on tariffs, investment and competition, with plans to publish proposals after consultations by mid-November. It is also considering privatising PSO, SSGC and SNGPL, while some strategic PSO activities could remain state-controlled; Muhammad Ali cited K-Electric's experience in discussing investor concerns about regulation and tariffs.