The government intends to solicit investors for the privatisation of DISCOS in January, according to an official.

The federal government intends to release Expressions of Interest (EoIs) for the privatisation of state-owned electricity distribution companies (DISCOs) in January of the upcoming year, according to Privatisation Adviser Muhammad Ali, who said that officials anticipate interest from investors in Türkiye.

Distribution Companies (DISCOs), responsible for billing, recoveries, and grid maintenance, have historically endured corruption and political intervention.

Pakistan has engaged commercial entities to oversee these companies, with Finance Minister Muhammad Aurangzeb stating that approximately 90 percent of DISCO boards are now led by private-sector professionals to enhance governance and progressively improve recoveries. The administration of Prime Minister Shehbaz Sharif intends to privatise three distribution companies: the Islamabad Electric Supply Company (IESCO), the Faisalabad Electric Supply Company (FESCO), and the Gujranwala Electric Power Company (GEPCO).

“We will publish the Expressions of Interest (EoIs) for investors in January,” stated Ali, who also presides over Pakistan’s Privatisation Commission, to the media.

“We are currently finalising their restructuring plan and transaction framework.”

During the second phase of DISCOs privatisation, the government will relinquish its ownership in the Hyderabad Electric Supply Company (HESCO) and Sukkur Electric Power Company (SEPCO).

Last month, Pakistan’s Privatisation Commission designated Raiffeisen Investment as its financial adviser for the privatisation of HESCO and SEPCO. Raiffeisen Investment is a prominent advisory firm in Central and Eastern Europe.

Recent local media reports indicate that Pakistan has solicited seasoned international private investors, especially from Türkiye, to participate in the forthcoming privatisation of its DISCOs.