The Privatisation Commission Board approved the prequalification of 10 out of 12 interested parties for the sale of the Faisalabad Electric Supply Company (Fesco), following the withdrawal of K-Electric and the disqualification of a lone Chinese firm on August 29, 2026. As Pakistan pushes forward with its power-sector reform agenda, this milestone marks a step in transferring state-owned distribution companies (Discos) into private hands to improve operational efficiency, modernise infrastructure, and reduce system losses.
The Shifting Landscape of Fesco’s Prequalification Race
The auction for Fesco narrowed significantly when Pakistan’s only privatised power utility, K-Electric, pulled its Expression of Interest (EOI). According to informed sources, the utility chose to step back rather than risk disqualification over missing audited financial accounts for the past two years. A K-Electric spokesperson confirmed the withdrawal, noting that the missing statements stem from the ongoing finalisation of the company’s Multi-Year Tariff (MYT)—a process beyond their control. Despite pulling out of the Fesco bidding, the company intends to target another distribution company through a consortium alongside Shahryar Chishti’s AsiaPak Investments, one of KE’s major shareholders.
At the same time, international ambitions hit a snag when Jiang Xi Electric Power Construction of China failed to meet the prequalification requirements. The firm submitted its EOI in Chinese rather than English on the final deadline, despite repeated requests to provide an English-language version. With these two exits, the remaining field narrowed to 10 vetted contenders approved by the Privatisation Commission Board, presided over by Prime Minister’s Adviser on Privatisation and Privatisation Commission Chairman Muhammad Ali.
A Diverse Lineup of Domestic and International Bidders
The surviving field of 10 interested parties showcases local industrial power alongside foreign capital. Aktor Elektrik Enerji Yatırımları San ve Tic AŞ, Genvera Enerji AŞ (Celik Group), and Cengiz Enerji Sanayii ve Ticaret AŞ are the three Turkish groups that successfully passed the evaluation.
The domestic roster features Engro Energy Limited, Sapphire Fibres Limited, Hub Power Holdings, Lucky Cement, Metro Ventures, and Shirazi Investments (Pvt) Limited (Atlas Group). Other participants include Artistic Milliners (Private) Limited, Maple Leaf Cement, Kohinoor Textile, and the Pakgen Limited Consortium—which is formed by Nishat Mills, Nishat Power, Nishat Chunian, Lalpir, Pak Elektron Ltd, and Kohinoor Energy. These prequalified groups will now secure access to the Virtual Data Room (VDR) to carry out detailed buy-side due diligence.
Broader Reforms and the Road Ahead for Batch-I Discos
This transaction sits squarely within a broader governmental push. Earlier this month, Prime Minister Shehbaz Sharif directed relevant authorities to deploy a “comprehensive strategy” to draw international investors to the Disco sell-offs while restructuring the Privatisation Commission within a month. Fesco represents one of three distribution companies in the Batch-I privatisation, alongside the Gujranwala Electric Power Company (Gepco)—which drew 11 EOIs—and the Islamabad Electric Supply Company (Iesco), where the EOI deadline runs through September 21, 2026.
Parallel to these sales, the regulatory architecture governing these utilities is undergoing an overhaul. The National Electric Power Regulatory Authority notified sweeping guaranteed performance and overall performance standards—the Performance Standards (Distribution) Regulations 2026—replacing the Discos Performance Rules 2005 after almost two years of consultations with stakeholders. For the first time, these utilities face mandatory consumer compensation and heavy fines for failing to meet strict deadlines for restoring power after blackouts, replacing faulty meters, or addressing voltage fluctuations.
As the Privatisation Commission moves these 10 vetted bidders deeper into the transaction pipeline, the real test will be whether private capital can successfully untangle distribution bottlenecks and financial hemorrhaging. What do you think about bringing private conglomerates into Pakistan’s power distribution grid? Share your perspective in the comments below.
