GEPCO seeks Rs25 billion hike in capital limit ahead of privatisation
ISLAMABAD: Gujranwala Electric Power Company has proposed a sharp rise in the GEPCO capital limit, from Rs50 billion to Rs75 billion, in a move tied to the government’s privatisation programme.
The proposal will go before the company’s 34th Extraordinary General Meeting on October 22, according to an official notice. The increase follows directions from the Cabinet Committee on Privatisation.
GEPCO capital limit: what the proposal changes
Each GEPCO share has a stated value of Rs10. Raising the authorised capital to Rs75 billion would lift the maximum number of shares the company can issue from five billion to 7.5 billion.
The key point is what the change does not do. It only raises the ceiling. It does not mean GEPCO will immediately issue new shares, raise fresh money or change its ownership. The official notice says nothing about whether new shares will be issued, how much might be raised, or how any funds would be spent.
The direction came from the Cabinet Committee on Privatisation through the Privatisation Commission, in a letter dated September 25. The change requires amending the company’s founding documents, and needs shareholder approval followed by the usual regulatory steps with the SECP.
If shareholders approve, the chief executive and the company secretary will be authorised to complete the paperwork.
The short-notice meeting
The October 22 meeting has been called with less than the usual 21 days’ notice. That is allowed under the Companies Act 2017, provided every member entitled to attend and vote agrees to the shorter notice. Members have been asked to give that consent.
The Secretary of the Ministry of Energy’s Power Division has been asked to authorise a representative to exercise the federal government’s voting rights at the meeting, since the state is the majority shareholder.
Part of a wider sell-off
The move is best read as housekeeping ahead of privatisation. A higher authorised capital gives the company flexibility to restructure its equity, bring in investors or adjust its balance sheet without returning to shareholders for fresh approvals each time.
GEPCO is one of several power distribution companies the government wants to hand to private management. Feature Pakistan has tracked the programme closely: the government is weighing political-risk guarantees to attract buyers for the discos, and has formally moved to privatise the power distribution companies.
Finance Minister Muhammad Aurangzeb has said Pakistan is looking to raise more than $1 billion through privatisation under the current push. The power sector, long weighed down by circular debt and losses, is central to that target.
For consumers, the immediate effect is nil. But the direction of travel is clear: the state is preparing its power companies for private hands, and balance-sheet moves like this one are the paperwork that comes first.
The original report on this development was published by ProPakistani.
FAQ
What is GEPCO proposing?
To raise its authorised share capital limit from Rs50 billion to Rs75 billion, increasing the maximum issuable shares from five billion to 7.5 billion at Rs10 each.
Does this mean GEPCO is issuing new shares?
Not necessarily. The proposal only raises the ceiling. The notice does not say whether new shares will be issued, how much might be raised or how funds would be spent.
When will shareholders vote?
The 34th Extraordinary General Meeting is scheduled for October 22, 2026, called on short notice under the Companies Act 2017.
