Pakistan targets privatisation of three DISCOs in Q1 2027

Pakistan is targeting privatisation of Faisalabad Electric Supply Company, Gujranwala Electric Power Company and Islamabad Electric Supply Company in the first quarter of 2027, Prime Minister’s Adviser on Privatisation and Privatisation Commission Chairman Muhammad Ali said on Saturday, October 31. Due diligence for the three companies is under way, while potential investors have sought more time to assess the transactions.

The government had initially planned to hold bidding in December 2026, but the schedule could be delayed following investor requests. The next group, Hyderabad Electric Supply Company and Sukkur Electric Power Company, is targeted for completion in the second quarter of 2027.

Lahore, Multan, Peshawar and Hazara distribution companies are also included in the programme, with their privatisation processes targeted for the second half of 2027. Ali said the government was working on investment plans and multi-year tariffs ahead of bidding, amid investor concerns about regulatory uncertainty, tariff revisions and long-term investment protection.

A proposed framework would require privatised distribution companies to adopt smart metering and technology, reduce electricity losses, improve recoveries and supply, and meet performance benchmarks. Investors could face penalties for missing benchmarks, while efficiency gains and lower losses would be rewarded, with benefits intended to be shared with consumers.