STARK CONTRAST: Compared to Qesco’s losses of Rs82 billion, Fesco suffered just Rs1 billion distribution loss and despite that it is the top priority for privatisation. PHOTO: FILE
ISLAMABAD:
Two new buyers have shown interest in the privatisation of Gujranwala Electric Power Company (Gepco), an efficient electricity distributor, in addition to nine bidders, who are already in the race for another distribution firm amid a lack of focus on entities whose losses stood very high in the last fiscal year.
The Privatisation Commission said on Friday that it received an overwhelming response from domestic and international investors for the privatisation of Gepco. It added that on the closing date for submission of Expressions of Interest (EOIs), the commission received EOIs from 11 prospective investors seeking to acquire 51% to 100% shareholding in Gepco together with management control.
However, the details showed that one new local and one foreign consortium submitted the EOIs while the remaining nine parties were already in the race and had submitted documents for Faisalabad Electric Supply Company (Fesco). According to the government’s new rules, a bidder that is technically and financially qualified for buying one entity can place an offer for the other two entities.
The rule has given an impression of an overwhelming majority of bidders vying to acquire these assets. But the overall pool largely remains the same. Among the new prospective bidders are Al Sharif Contracting and Commercial Development Company (Saudi Arabia) and AKD Securities, Fast Cables and Mughal Steel Group of Pakistan.
Among the parties that are already in the race are three Turkish companies – Aktor Elektrik Enerji, Genvera Enerji A (Celik Group) and Cengiz Enerji Sanayii ve Ticaret A. Prominent Pakistani investors showing interest in state-owned companies are Engro Energy, owned by the Dawood family that runs multiple businesses, and the Abdullah family’s Sapphire Fibers.
Another one of the richest groups having deep stakes in the power sector is Hub Power Holdings of the Habibullah Khan family. Shirazi Investments, which has stakes in the automobile sector, has also submitted documents to participate in the process.
Artistic Milliners, owned by the Yaqoob family, is also keen to acquire the power distribution companies. K-Electric, the country’s largest integrated power distribution and generation company, too has submitted documents for Gepco.
“Today marks another important achievement in the privatisation of DISCOs. The strong response for Gepco is indicative of investor confidence in the potential of Pakistan’s electricity distribution sector and in the government’s commitment to a transparent, competitive and professionally managed process,” said Muhammad Ali, Adviser to the Prime Minister on Privatisation.
The Expressions of Interest and Statements of Qualification (SOQs) submitted by the interested parties will now undergo an evaluation process in line with the approved prequalification criteria.
Gepco is among the three electricity distribution companies in DISCOs Batch-I, alongside Fesco and Islamabad Electric Supply Company (Iesco). The deadline for submission of EOIs for Iesco is September 7, 2026 while EOIs from 12 interested parties were received for Fesco by the deadline of August 7, 2026.
Fresh details showed that at a time when the government was focusing on selling the profitable assets, the loss-making entities were still bleeding heavily.
According to a reply that Power Minister Awais Ahmad Khan Leghari submitted in parliament this week, the Quetta Electric Supply Company’s distribution and transmission losses jumped alarmingly to Rs82 billion in the last fiscal year – 2025-26. A year ago, the losses stood at Rs52 billion. In terms of percentage, Qesco’s losses swelled from 38.4% to 60.2%, according to the minister’s written reply.
Compared to the Qesco losses of Rs82 billion, Fesco suffered just Rs1 billion distribution loss and despite that it is the government’s top priority for privatisation.
Likewise, Peshawar Electric Supply Company’s (Pesco) losses hit Rs85 billion in the last fiscal year, slightly lower than Rs87 billion in the preceding year. However, in percentage, Pesco’s losses jumped from 37.1% to 40.7% within a year, showing the poor performance of the Power Division.
Compared to Pesco’s losses of Rs85 billion, Gepco’s distribution and transmission losses were a mere Rs6 billion, or 10%.
Another entity that is on the priority privatisation list, Iesco, incurred only Rs2 billion loss in the last fiscal year, down from Rs5 billion a year ago, according to the power minister’s reply.
Sukkur Electric Power Company registered Rs34 billion, or 38.5%, distribution and transmission losses but Multan Electric Power Company recorded Rs6 billion, or 12.4%, losses in the last fiscal year and it is on the government’s radar for privatisation.
Hyderabad Electric Supply Company caused Rs20 billion, or 25.7%, losses, which were Rs7 billion, or 2.2%, less than a year ago. Lahore Electric Supply Company, which was added to the privatisation list, suffered Rs26 billion, or 12.2%, losses, down Rs9 billion over a year ago.
