PM Shehbaz Orders One-Month Privatisation Commission Overhaul to Sell Three DISCOs

Prime Minister Shehbaz Sharif on Wednesday directed authorities to adopt a "comprehensive strategy" to attract international investors for the privatisation of state-owned power distribution companies (DISCOs) and to complete a full restructuring of the Privatisation Commission within one month. The first phase of privatisation targets three utilities: GEPCO (Gujranwala Electric Power Company), FESCO (Faisalabad Electric Supply Company), and IESCO (Islamabad Electric Supply Company).

First Phase Focuses on GEPCO, FESCO, and IESCO

Officials briefed the Prime Minister that roadshows for the three DISCOs earmarked in the first privatisation phase have already concluded. These events, held both domestically and in Turkey, Saudi Arabia, and China, were described as having produced "encouraging results" with measurable investor interest generated in the programme.

The PM stressed that all privatisation stages must be completed within stipulated timeframes and in line with established rules and international best practices. Crucially, he also instructed that consumer interests must be prioritised throughout the process — a directive that signals the government is aware of public concern that private ownership could translate into higher tariffs or reduced service accountability.

Privatisation Commission to Be Restructured and Staffed in 30 Days

The meeting was also briefed on efforts to reform the Privatisation Commission itself through institutional restructuring and the induction of skilled professionals. PM Shehbaz directed the Commission to recruit experts with internationally competitive qualifications in three key areas:

• Finance — to evaluate investor bids and structure transaction terms
• Law — to ensure regulatory and contractual compliance
• Information Technology — to support data rooms and digital transaction processes

The Commission has been given one month to complete this workforce strengthening exercise, indicating the government wants the privatisation process to accelerate rather than stall on institutional capacity gaps.

Why These Three DISCOs First

GEPCO, FESCO, and IESCO are widely regarded as among the better-performing distribution companies in Pakistan's WAPDA-managed DISCO network. IESCO serves the Islamabad Capital Territory and parts of Punjab, FESCO covers the Faisalabad industrial belt, and GEPCO serves the Gujranwala division — a manufacturing hub. Selecting relatively stronger DISCOs for the first phase is a standard privatisation sequencing strategy: demonstrating a successful early transaction builds market confidence for subsequent, harder-to-sell entities such as HESCO (Hyderabad Electric Supply Company), PESCO (Peshawar Electric Supply Company), or QESCO (Quetta Electric Supply Company).

Pakistan's DISCO privatisation agenda also sits within the country's broader IMF programme commitments, under which the government has agreed to reduce the fiscal burden of loss-making state-owned enterprises. Chronic circular debt — now counted in the trillions of rupees — is partly driven by DISCO inefficiencies, including high transmission and distribution losses and poor recovery rates in several regions.