Govt to transfer IESCO land, pension liabilities and debts to PHL ahead of privatisation

The government plans to move Islamabad Electric Supply Company’s (IESCO) land, retired-worker pension liabilities and selected debts to Power Holding Limited (PHL) before the distributor’s planned privatisation, Profit by Pakistan Today reported. The arrangement, approved by the Cabinet Committee on Privatisation in August 2026 and endorsed by the Federal Cabinet on September 23, covers IESCO, Faisalabad Electric Supply Company and Gujranwala Electric Power Company.

PHL would take ownership of IESCO’s land and lease it back to the company, while taking on pension and other retirement-benefit obligations for former employees. IESCO would retain liabilities for serving staff and debt repayments that are not yet due; Rs1.5 billion from its retirement trusts would also remain set aside for current employees. Other transfers include specified government payables and receivables, overdue loan-servicing obligations with markup, and Federal Board of Revenue tax claims and related court cases.

IESCO has asked creditors with claims outstanding on June 30, 2026, for consent, and says PHL will assume transferred obligations once the scheme takes effect. Implementation requires approval under the Companies Act, 2017, including sanction by the Securities and Exchange Commission of Pakistan. The restructuring is intended to separate selected assets and legacy obligations before the government sells its stake to private investors.