The Privatisation Commission Board has prequalified 10 companies and business groups for the privatisation of Islamabad Electric Supply Company (IESCO), moving the power utility closer to the next stage of its sale.
The decision was taken at the board’s 260th meeting on Thursday, chaired by Muhammad Ali, Adviser to the Prime Minister on Privatisation and chairman of the Privatisation Commission.
IESCO privatisation: who made the shortlist
The 10 prequalified interested parties include three Turkish energy companies and several major Pakistani business groups and investment consortia.
The Turkish firms are Aktor Elektrik Enerji Yatirimlari, Genvera Enerji and Cengiz Enerji, all of which have experience in electricity distribution and renewable generation. The domestic names include Engro Energy, Sapphire Fibers, Novatex, Bestway Cement, an Artistic Milliners-led consortium comprising Lake City Holdings, Fatima Capital, Din Ventures and Fazal Cloth Mills, a Hub Power Holding-led consortium comprising Lucky Cement, Kohat Cement and Metro Ventures, and a Hasnaat Brothers Construction-led consortium comprising Dhilal Holding Group, Pak Steel, Bio-Labs and Farid Steel Casting.
The prequalified parties will now get access to the Virtual Data Room, a secure digital platform carrying IESCO’s confidential financial, commercial and operational information. Through it, bidders will examine the company’s financial statements, liabilities, revenue streams and distribution infrastructure before preparing their bids.
The board said the mix of domestic and international investors reflected confidence in the country’s electricity distribution sector and in a transparent, competitive and professionally managed transaction process.
What the prequalification means
Prequalification is a procedural milestone, not a sale. The final buyer, transaction value and completion schedule remain undetermined. The framework allows for the sale of a controlling stake ranging from 51 per cent to 100 per cent, together with management control, subject to the final transaction structure and approvals.
IESCO is part of the first batch of power distribution companies identified for privatisation, alongside Faisalabad Electric Supply Company (FESCO) and Gujranwala Electric Power Company (GEPCO). Ten interested parties were earlier prequalified for FESCO, while 11 expressions of interest were received for GEPCO and are under evaluation.
The privatisation of the distribution companies is a central plank of the government’s power-sector reform agenda, alongside the broader privatisation drive that has already moved assets such as Islamabad airport onto the sale list. The stated aims are better operational efficiency, modernised distribution infrastructure, stronger customer service and lower losses, which should over time mean more affordable and reliable power for consumers.
Other decisions at the 260th meeting
The board also approved the addition of consortium members to Artistic Milliners for its participation in the FESCO privatisation process. It approved changes to the privatisation structure and restructuring plan for Zarai Taraqiati Bank Limited (ZTBL).
Separately, the board selected a consortium led by Deutsche Bank as the top-ranked candidate to serve as financial adviser for the privatisation of the State Life Insurance Corporation of Pakistan. A negotiation committee has been formed to finalise the Financial Advisory Services Agreement with the consortium.
Frequently asked questions
Which companies are prequalified for the IESCO sale?
Ten parties: Aktor Elektrik, Genvera Enerji and Cengiz Enerji of Turkiye; Engro Energy; Artistic Milliners-led consortium; Hub Power Holding-led consortium; Sapphire Fibers; Novatex; Bestway Cement; and a Hasnaat Brothers Construction-led consortium.
What happens next in the IESCO privatisation?
The prequalified bidders will access the Virtual Data Room to conduct detailed buy-side due diligence before the final bidding stage.
Has IESCO been sold?
No. Prequalification is a procedural step. The final buyer, the transaction value and the completion schedule are yet to be determined.
