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Federal and provincial energy policy — Power Division decisions, IGCEPs, IMF conditions, and the regulatory frameworks shaping the next decade.
48 stories · Page 1 of 5
Pakistan has prequalified 10 bidders for the privatisation of IESCO, the Islamabad Electric Supply Company, moving the transaction into its next competitive phase. IESCO is the first state-owned distribution company in the government's IMF-linked privatisation queue, with other DISCOs expected to follow if the process concludes successfully.
Pakistan's power sector circular debt has risen to Rs. 1.675 billion as of October 2026, ARY News reported, adding to financial pressure across the energy supply chain. The accumulation reflects persistent shortfalls in DISCO revenue collection, delayed government subsidies, and rising capacity payment obligations owed to Independent Power Producers.
Pakistan has conducted its first electricity wheeling auction, a landmark step away from the centralised single-buyer model that has governed the power sector for decades. The auction allows large buyers to procure power directly from generators using the national grid, marking the beginning of competitive electricity trading in Pakistan.
Pakistan's Ministry of Privatisation has decided to sell LESCO and MEPCO to private investors as whole, unsplit entities rather than dividing them into smaller zones first. The move covers two of Punjab's largest distribution companies and must still clear a formal NEPRA licence transfer process before ownership changes hands.
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.
The Privatisation Commission has received 12 expressions of interest for FESCO from three Turkish firms, one Chinese company, and eight Pakistani investor groups. Bidders are seeking a 51% to 100% stake with full management control, marking a significant milestone in the government's DISCO privatisation programme.
The Central Development Working Party has approved Karachi's K-IV water scheme at a revised cost of Rs172 billion, nearly ten times the original Rs15.8 billion estimate set in 2007. The project's carrying capacity has been cut from 650MGD to 260MGD, and a 50MW electricity supply for its pumping stations forms a key part of the approved scope.
Prime Minister Shehbaz Sharif has directed a comprehensive international investor strategy for DISCO privatisation, with GEPCO, FESCO, and IESCO earmarked for the first phase. Roadshows in Turkey, Saudi Arabia, and China have already concluded with the Privatisation Commission given one month to restructure and recruit qualified experts.
Prime Minister Shehbaz Sharif has ordered a comprehensive technical audit of billing systems across all power distribution companies, directing the Power Division to set clear performance targets and eliminate electricity theft. Five DISCOs — IESCO, LESCO, GEPCO, FESCO, and MEPCO — achieved 100 per cent billing recovery in fiscal year 2025-26.
Planning Minister Ahsan Iqbal has urged a rapid, phased shift of Pakistan's road transport to electric power, warning that 80 per cent of national petrol consumption is driven by vehicles. The government has already introduced an Rs. 80,000 subsidy for electric motorcycles and cut import duties on EVs in the latest federal budget.