DISCO privatisation advances as PC Board clears key transactions

The Privatisation Commission (PC) Board moved Pakistan’s DISCO privatisation forward on Thursday, prequalifying 10 Interested Parties for the Islamabad Electric Supply Company (IESCO) and approving major decisions on other state firms—steps aimed at attracting both domestic and international capital to improve service delivery.

DISCO privatisation: Deals and Participants

The Board, chaired by Muhammad Ali, approved the prequalification of 10 Interested Parties for IESCO’s sale, including three Turkish energy companies and several prominent Pakistani consortia. Named prequalified parties include Aktor Elektrik Enerji Yatirimlari San. ve Tic. A.S. (Türkiye), Genvera Enerji A.S. (Türkiye), Cengiz Enerji Sanayii ve Ticaret A.S. (Türkiye), Engro Energy Limited, and a consortium led by Artistic Milliners, among others.

IESCO is part of Batch‑I of power distribution companies slated for privatisation alongside Faisalabad Electric Supply Company Limited (FESCO) and Gujranwala Electric Power Company Limited (GEPCO). The Artistic Milliners consortium was also authorised to add members for its bid in the FESCO transaction, enabling broader consortium participation across Batch‑I.

Next steps and related transactions

The 10 prequalified Interested Parties will gain access to a Virtual Data Room (VDR) to carry out buy‑side due diligence and proceed to subsequent stages per the approved transaction process. Separately, the Board approved structural modifications and a restructuring plan for the privatisation of Zarai Taraqiati Bank Limited (ZTBL) to preserve its core mandate of agricultural and farmer financing after any transfer of ownership.

For the State Life Insurance Corporation (SLIC) privatisation, the Board selected a Deutsche Bank‑led consortium as the top‑ranked Financial Adviser and constituted a Negotiation Committee to finalise the Financial Advisory Services Agreement (FASA).

What This Means for Pakistan

These approvals signal a push to attract credible domestic and international investment into Pakistan’s state‑owned utilities and financial institutions. For electricity consumers, the intended outcome is improved operational efficiency and service delivery if private ownership and management bring investment and performance improvements. For farmers, the ZTBL restructuring explicitly preserves the bank’s agricultural financing role, reducing the risk that privatisation might curtail credit for the sector.

On the fiscal side, successful transactions could lessen government’s management burden of loss‑making entities and potentially mobilise new capital, while the selection of an international financial adviser for SLIC aims to professionalise the sale process and bolster investor confidence.

These developments come amid a broader push to modernise and monetise state assets; observers will watch the VDR stage and ensuing bids for indications of pricing, investor appetite and the timeline for final transfers.

Background: The Privatisation Commission has grouped several power distribution companies into batches for sale. Batch‑I comprises IESCO, FESCO and GEPCO. The current approvals set the stage for detailed due diligence, negotiation and eventual transaction execution under the Commission’s publicly stated goals of transparent and competitive processes.

For related coverage of Pakistan’s corporate and public sector financial developments, see PTCL Group results: 62% revenue jump in nine months and broader economic technology initiatives at the Global AI Summit.

Sources: News Source