Pakistan is pressing ahead with a major infrastructure privatization. The Privatization Commission Board recommended Cabinet approval for the power distributor privatization program’s first phase. Therefore, three major electricity distributors face imminent restructuring and sale. Moreover, the move signals government commitment to attracting private investment.

The power distributor privatization covers three utilities. Faisalabad Electric Supply Company, Gujranwala Electric Power Company, and Islamabad Electric Supply Company comprise phase one. The Privatization Commission Board reviewed audited financial statements through March 31, 2026. Subsequently, it recommended restructuring plans for Cabinet consideration.

The restructuring employs a sophisticated framework. A Special Purpose Vehicle will hold selected assets and liabilities excluded from privatization. This arrangement creates a cleaner transaction structure. Additionally, it maximizes government value while maintaining commercial viability. Therefore, both domestic and foreign investors should find the structure attractive.

Interest from investors runs strong already. Both local and international bidders have expressed acquisition interest. However, formal timelines remain tight. FESCO has an August 7 deadline for expressions of interest. GEPCO’s deadline falls August 21. Meanwhile, IESCO must receive EOIs by September 7.

The board approved additional privatization measures simultaneously. Two transaction committees were constituted for airport outsourcing. These committees will oversee Islamabad, Lahore, and Karachi airport operations. The Asian Development Bank already serves as financial adviser for Islamabad International Airport. Financial adviser appointments for the other two airports remain pending.

The board also appointed audit firms for oversight. RSM Avais Hyder Liaquat Nauman will audit completed privatization transactions. They will conduct separate audits for fiscal years 2024-25 through 2026-27. Meanwhile, BDO Ebrahim & Co. continues the Commission’s annual financial audits through 2027-28.

Officials emphasized transparent and professional management throughout. The government remains committed to competitive processes. Moreover, efficiency improvements and private investment attraction drive the agenda. Finally, maximizing value for the state and Pakistan’s citizens remains the overarching goal.