Which electricity distribution companies in Pakistan could be privatised?

The government has not officially confirmed specific DISCOs for privatisation, but IESCO (Islamabad) and GEPCO (Gujranwala) have been discussed informally as early candidates due to their relatively lower transmission and distribution losses. A final list would be announced through the Privatisation Commission and ratified by the federal cabinet.

Will DISCO privatisation cause my electricity bill to go up?

Not automatically. Any tariff change resulting from a privatisation transaction would require a separate determination by NEPRA, Pakistan's electricity regulator. In principle, private management aims to cut losses and theft, which over time could reduce the cost burden passed on to consumers, but short-term pricing impacts depend entirely on the deal structure.

Does this privatisation plan affect K-Electric customers in Karachi?

No. K-Electric already operates as a privately-owned, vertically-integrated utility in Karachi and is not part of the DISCO privatisation discussions. The talks with Türkiye relate to the state-owned DISCOs operating under WAPDA and the Power Division.

What role does the IMF play in Pakistan's DISCO privatisation push?

The International Monetary Fund has included structural benchmarks in Pakistan's ongoing programme that require progress on reducing the losses and fiscal burden of state-owned enterprises, including electricity DISCOs. Privatisation or private management of DISCOs is seen as a key step toward meeting those conditions and arresting the growth of circular debt.

Has Türkiye successfully privatised its own electricity sector, and what can Pakistan learn?

Yes. Türkiye completed the auction of its regional electricity distribution companies to private investors between 2008 and 2013, which led to measurable reductions in distribution losses and improved network investment. Pakistani officials have referenced the Turkish model as a potential template, though local regulatory, political, and financial conditions would shape any adaptation.

PolicyDevelopingAI

Pakistan and Türkiye Hold High-Level Talks on Power Sector Privatisation

Pakistan's Adviser on Privatisation Muhammad Ali and Power Minister Sardar Awais Ahmad Khan Leghari held talks with Turkish officials on 25 June 2026 to explore cooperation on power sector privatisation and reform. The engagement reflects Islamabad's ongoing push to offload loss-making state-run distribution companies as part of its IMF programme commitments.

PowerPost AI Bureau · Reviewed by Editorial TeamJun 26, 20263 min read0 views

ShareWhatsApp Tweet Facebook LinkedIn

Pakistan's Adviser to the Prime Minister on Privatisation, Muhammad Ali, and Federal Minister for Power Sardar Awais Ahmad Khan Leghari met with Turkish counterparts on 25 June 2026 to discuss cooperation on power sector privatisation and structural reforms — a sign that Islamabad is actively courting foreign expertise as it accelerates its DISCO (Distribution Company) privatisation agenda.

What Was Discussed

Details released from the meeting are limited, but the bilateral engagement centred on two broad themes: the privatisation of Pakistan's state-owned electricity distribution companies and wider structural reforms in the power sector. Türkiye has undergone its own large-scale energy liberalisation over the past two decades, successfully transitioning significant portions of its generation and distribution infrastructure from state ownership to private management — experience that Pakistani officials appear keen to study and potentially replicate.

Muhammad Ali, who leads Islamabad's privatisation programme, and Leghari, who oversees the Power Division, represent the two key ministries that would jointly shape any transaction involving the DISCOs. Their joint presence at these discussions signals a coordinated push rather than a siloed departmental conversation.

Pakistan's Privatisation Drive — Where It Stands

Pakistan's government has been under sustained pressure — including from the International Monetary Fund (IMF) as part of its ongoing programme conditions — to reduce the fiscal burden of loss-making, state-run DISCOs. These include LESCO (Lahore), IESCO (Islamabad), MEPCO (Multan), FESCO (Faisalabad), PESCO (Peshawar), HESCO (Hyderabad), QESCO (Quetta), GEPCO (Gujranwala), and TESCO (Tribal areas), along with K-Electric, which already operates as a private vertically-integrated utility in Karachi.

Aggregate losses across the DISCO network — driven by high transmission and distribution (T&D) losses, electricity theft, and poor bill recovery — contribute directly to Pakistan's chronic circular debt problem, which has ballooned to trillions of rupees. Privatisation, or at minimum, the injection of private management, is seen as one structural fix to improve operational efficiency without further burdening the federal budget.

The government has already floated the idea of privatising one or more financially stronger DISCOs as a pilot. IESCO and GEPCO have historically been cited as candidates due to their relatively lower loss levels and urban consumer bases.

Why Türkiye?

Türkiye privatised its electricity distribution network between 2008 and 2013, dividing the country into regional distribution companies and auctioning them to private investors. The process raised billions in proceeds and, over time, contributed to measurable improvements in network reliability and loss reduction. Pakistani officials have previously referenced the Turkish model when framing their own reform roadmap.

Beyond the policy model, Turkish engineering and construction firms have a growing footprint in Pakistan's infrastructure sector. Bilateral energy cooperation — whether in the form of technical assistance, investment, or project execution — could complement Islamabad's reform goals.

What This Means for Pakistani Consumers

For the average household receiving a bill from LESCO, MEPCO, or any other state-run DISCO, DISCO privatisation — if it proceeds — would be the most consequential structural change to everyday electricity service in decades. In theory, private management should reduce power theft, improve fault-response times, and cut the inefficiencies that partly drive high tariffs. In practice, outcomes depend entirely on the regulatory framework that NEPRA (the National Electric Power Regulatory Authority) enforces on any new private operator.

No timelines, transaction values, or specific DISCO names have been confirmed from the Islamabad–Ankara discussions. Consumers should watch for formal NEPRA public hearings and Power Division announcements before expecting any direct impact on their bills or service quality. Any tariff implications arising from a privatisation transaction would require a separate NEPRA determination.

Frequently Asked

Questions about this story

Which electricity distribution companies in Pakistan could be privatised?
The government has not officially confirmed specific DISCOs for privatisation, but IESCO (Islamabad) and GEPCO (Gujranwala) have been discussed informally as early candidates due to their relatively lower transmission and distribution losses. A final list would be announced through the Privatisation Commission and ratified by the federal cabinet.
Will DISCO privatisation cause my electricity bill to go up?
Not automatically. Any tariff change resulting from a privatisation transaction would require a separate determination by NEPRA, Pakistan's electricity regulator. In principle, private management aims to cut losses and theft, which over time could reduce the cost burden passed on to consumers, but short-term pricing impacts depend entirely on the deal structure.
Does this privatisation plan affect K-Electric customers in Karachi?
No. K-Electric already operates as a privately-owned, vertically-integrated utility in Karachi and is not part of the DISCO privatisation discussions. The talks with Türkiye relate to the state-owned DISCOs operating under WAPDA and the Power Division.
What role does the IMF play in Pakistan's DISCO privatisation push?
The International Monetary Fund has included structural benchmarks in Pakistan's ongoing programme that require progress on reducing the losses and fiscal burden of state-owned enterprises, including electricity DISCOs. Privatisation or private management of DISCOs is seen as a key step toward meeting those conditions and arresting the growth of circular debt.
Has Türkiye successfully privatised its own electricity sector, and what can Pakistan learn?
Yes. Türkiye completed the auction of its regional electricity distribution companies to private investors between 2008 and 2013, which led to measurable reductions in distribution losses and improved network investment. Pakistani officials have referenced the Turkish model as a potential template, though local regulatory, political, and financial conditions would shape any adaptation.

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