LESCO and MEPCO Enter Privatisation Queue as EY-Parthenon Wins Airport Adviser Role
Pakistan's Privatisation Commission has approved EY-Parthenon as financial adviser for outsourcing Lahore and Karachi airports while designating LESCO and MEPCO as the fourth batch of power distribution companies to enter the privatisation process. FESCO, leading the first DISCO batch, has already attracted around a dozen local and international investors with expressions of interest currently under review.
Pakistan's Privatisation Commission on Tuesday named EY-Parthenon as financial adviser for the outsourcing of Allama Iqbal International Airport in Lahore and Jinnah International Airport in Karachi, while simultaneously designating LESCO (Lahore Electric Supply Company) and MEPCO (Multan Electric Power Company) as priority transactions in the government's power-sector privatisation programme. The twin decisions signal a notable acceleration of Pakistan's privatisation agenda across both aviation infrastructure and electricity distribution.
The commission's board of directors approved the EY-Parthenon consortium as the top-ranked interested party and constituted a negotiation committee to finalise the Financial Advisory Services Agreement (FASA) for both airports.
EY-Parthenon and ADB Anchor the Airport Outsourcing Drive
Tuesday's decision completes the advisory picture for all three of Pakistan's major commercial airports. The Manila-based Asian Development Bank (ADB) was appointed last month as financial and transaction adviser for the New Islamabad International Airport outsourcing, while EY-Parthenon now takes that role for the Lahore and Karachi facilities. Both appointments reflect a strategy of enlisting established international advisers to attract credible investors. The model under consideration involves private operators managing, maintaining, and investing in the airports under long-term agreements while the government retains ownership of the underlying land and infrastructure.
LESCO and MEPCO: The Fourth DISCO Batch Headed for Market
The commission's board formally classified LESCO and MEPCO as major transactions, a designation that triggers mandatory appointment of financial advisers under applicable privatisation regulations. The commission will now begin the appointment process for both utilities.
LESCO and MEPCO constitute the fourth batch of power distribution companies (DISCOs — state-owned utilities responsible for distributing electricity to homes and businesses) approved for privatisation. LESCO serves Lahore and surrounding central Punjab districts and is one of the largest DISCOs by customer base in the country. MEPCO covers Multan and a wide swathe of southern Punjab. Together they carry significant levels of technical losses (electricity lost in the network) and commercial losses (uncollected consumption), making their privatisation commercially demanding but structurally important for reducing the sector's financial burden.
Where Earlier DISCO Batches Stand
Three earlier DISCO batches are already progressing through the privatisation pipeline:
- FESCO (Faisalabad Electric Supply Company), the lead DISCO in the first batch, has attracted roughly a dozen local and international investors. Formal expressions of interest (EOIs) from those investors are currently under review by the commission.
- The two remaining first-batch DISCOs have an EOI submission deadline approximately two months away.
DISCOs in the second and third batches are at different earlier stages of the same process. The government has framed the broader DISCO privatisation programme as a structural remedy for Pakistan's chronic circular debt — the compounding cash deficit across the power sector that costs the public treasury hundreds of billions of rupees each year and has been a persistent focal point in economic reform discussions.
Frequently Asked
Questions about this story
Does the Privatisation Commission's approval of LESCO and MEPCO change my electricity bill or outage schedule immediately?
No. Bills, tariff slabs, and outage schedules for LESCO and MEPCO customers remain exactly as currently set by NEPRA. The commission has only designated them as major transactions — a financial adviser has not even been appointed yet, and any change in ownership or management is still multiple years away.What does a financial adviser do in Pakistan's DISCO privatisation process?
A financial adviser assesses the utility's value, structures the transaction, prepares investor materials, and guides the government through negotiations with potential buyers or operators. For DISCOs, this work must be completed before formal expressions of interest can be invited from the market.Which electricity distribution companies are being privatised first in Pakistan?
FESCO (Faisalabad Electric Supply Company) is leading the first batch and has already received expressions of interest from around a dozen investors currently under review. Two other first-batch DISCOs have an EOI deadline approximately two months away. LESCO and MEPCO are in the more recently approved fourth batch.Will NEPRA still regulate electricity tariffs if LESCO or MEPCO is privatised?
Yes. NEPRA (National Electric Power Regulatory Authority) retains tariff-setting authority regardless of whether a DISCO is publicly or privately owned. Any future rate increases would still require a formal NEPRA determination and public hearing process before appearing on household bills.Who is advising on the outsourcing of New Islamabad International Airport, and how does that differ from Lahore and Karachi?
The Asian Development Bank (ADB), headquartered in Manila, was appointed last month as financial and transaction adviser for New Islamabad International Airport. EY-Parthenon, approved on Tuesday, will fulfil the equivalent advisory role for Allama Iqbal International Airport in Lahore and Jinnah International Airport in Karachi.
Free Newsletter
Get Pakistan's Energy Week in 3 Minutes
NEPRA decisions, tariff moves, solar updates, and load shedding news — one short email every week. No spam.
One email per week · Unsubscribe anytime · No spam
