Privatization board clears key steps to offload power companies

ISLAMABAD: Pakistan’s Privatization Commission Board has approved the launch of a formal process to hire financial advisers (FAs) for the privatization of four power distribution companies and two generation plants, signaling a major step forward in opening the loss-making power sector to private investment.

At its meeting, chaired by Prime Minister’s Adviser on Privatization and Commission Chairman Muhammad Ali, the board cleared financial advisory hiring for Hyderabad Electric Supply Company (HESCO), Sukkur Electric Power Company (SEPCO), Peshawar Electric Supply Company (PESCO), and Hazara Electric Supply Company (HAZECO), as well as the 747MW Guddu and 525MW Nandipur power plants.

The board also approved audited financial statements of the commission for fiscal years 2022-23 and 2023-24 and sanctioned its budget estimates for FY-2025-26 to ensure continuity of institutional operations.

Officials briefed the board on progress in ongoing transactions including Pakistan International Airlines Corporation Ltd. (PIACL), the Roosevelt Hotel in New York, and three additional power distribution firms Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO) and Islamabad Electric Supply Company (IESCO).