By Staff Reporter
ISLAMABAD: Pakistan drew 10 expressions of interest for Islamabad Electric Supply Co., the third of three state-owned power distributors to complete a first bidding round in a privatisation program the government is pursuing under International Monetary Fund oversight.
The Privatisation Commission said the bids, received on Monday’s closing date, came from three Turkish companies and seven Pakistani businesses or consortiums. Each is seeking a 51% to 100% stake in the utility, known as Iesco, along with management control. The commission described the response as “overwhelming.”
The turnout follows a similar showing for the other two utilities in the first batch of sales. Ten parties have been prequalified for Faisalabad Electric Supply Co. (Fesco), while 11 expressions of interest for Gujranwala Electric Power Co. (Gepco), are being evaluated. Together the three are considered the most viable of the 11 distributors carved out of the Water and Power Development Authority in 1998.
The Bidders
The Turkish contenders are Aktor Elektrik Enerji Yatirimlari, Genvera Enerji and Cengiz Enerji. All three also bid for Gepco, and they also expressed interest in Fesco.
The Pakistani field includes Engro Energy Ltd.; Sapphire Fibres Ltd.; Novatex Ltd.; and Bestway Cement Ltd. Three consortiums are also in the running:
- One led by Artistic Milliners, with The Lake City Holdings, Fatima Capital Ltd., Din Ventures (Pvt) Ltd. and Fazal Cloth Mills Ltd.
- One led by Hub Power Holdings Ltd., with Lucky Cement Ltd., Kohat Cement Ltd. and Metro Ventures (Pvt) Ltd.
- A newcomer to the process, led by Hasnaat Brothers Construction Co. (Pvt) Ltd., with Dhilal Holding Group, Pak Steel, Bio-Labs (Pvt) Ltd. and Farid Steel Casting (Pvt) Ltd.
Most of the Iesco bidders had also applied for Fesco and Gepco. Hasnaat Brothers’ group is the only new investor consortium to emerge for Iesco.
Next Steps
The commission will evaluate the expressions of interest and statements of qualification against approved prequalification criteria. Applicants that qualify will be invited to the next stage, where they get access to a virtual data room for detailed buy-side due diligence. The commission said it would work with prequalified investors to reach agreement on what it called an “equitable, transparent and predictable” post-privatisation regime.
“This is an important milestone in the privatisation of Discos,” Muhammad Ali, the commission’s chairman and the prime minister’s adviser on privatisation, said in a statement. He said the response showed investors “have confidence in the potential of Pakistan’s electricity distribution sector and in the government’s commitment to a transparent, competitive and professionally managed process.”
The commission said the sale is meant to improve operational efficiency, modernise distribution infrastructure, strengthen customer service and reduce losses. It added that a more financially sustainable power sector should, over time, lead to more affordable and reliable electricity for consumers.
Pakistan is seeking to hand over the distributors to private operators as part of reforms tied to its IMF-backed stabilisation program. The aim is to cut losses, improve bill collection and address circular debt, the chain of unpaid power-sector obligations that has strained public finances for years. The sector’s circular debt exceeded 2.6 trillion rupees ($9.3 billion) as of mid-2025, according to official data cited in privatisation documents. Under its IMF commitment, Pakistan is required to finish the sales of Iesco, Gepco and Fesco by early 2027, according to a report in The Nation newspaper.
The commission invited expressions of interest for all three companies in May. It later extended the Iesco deadline from Sept. 7 to Sept. 21 to give investors more time to complete due diligence. Fesco drew 12 expressions of interest earlier, including from three Turkish companies and China’s Jiang Xi Electric Power Construction. Gepco drew 11, including one Saudi company.
Iesco has improved its operating performance, cutting line losses to 7.6% from 8.75% over the past two financial years, according to Business Recorder. Sapphire Fibres said in a stock exchange filing last week that its board approved participation in the process, though it assumed no binding obligation.
The restructuring plan approved by the Cabinet Committee on Privatisation would create a special purpose vehicle to take over selected assets, including land, and certain liabilities linked to retirement benefits of former employees, according to local media reports. The distributors would retain benefits for current staff.
The wider program envisions further sales. Officials have said Peshawar, Sukkur, Lahore, Multan and Hyderabad distributors would follow in later phases, and Pakistan completed the sale of Pakistan International Airlines in December.
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