The federal government has decided to move forward with the privatization of three major power distribution companies in Pakistan. Officials decided during a Cabinet Committee on Privatization meeting chaired by Deputy Prime Minister Ishaq Dar in Islamabad.
During the meeting, the committee reviewed several important matters related to the country’s power sector. In particular, members discussed the privatization process for IESCO, GEPCO, and FESCO.
The government aims to improve efficiency and financial stability in the electricity sector through this decision. Therefore, authorities approved the financial transaction structure for the sale of these power distribution companies.
According to the official statement, the government will offer between 51 percent and 100 percent share capital in each of the selected entities. In addition, the privatization package will also include management control of the companies after cabinet approval.
Officials believe the decision will improve operational performance and strengthen electricity services for consumers. At the same time, the government hopes private sector expertise will reduce inefficiencies in the distribution system.
The discussion about power distribution companies gained attention because Pakistan continues to face challenges with electricity losses, circular debt, and service interruptions. Therefore, policymakers want to introduce reforms that can improve governance and financial management in the sector.
Speaking during the meeting, Ishaq Dar said the private sector can help modernize electricity management systems. He added that experienced private investors can improve service delivery and ensure a more reliable power supply across different regions.
Meanwhile, energy experts continue to debate the long-term impact of privatization on electricity prices and customer service. Some analysts support the move because they believe private management may increase efficiency. However, others stress the importance of strong regulatory oversight to protect consumers.
The government also linked the latest reform plan with commitments made under the International Monetary Fund program. Officials said structural reforms in the energy sector remain necessary to improve economic stability and reduce financial pressure on state institutions.
The privatization process for these power distribution companies may begin in phases after final cabinet approvals and regulatory procedures are completed. Authorities expect investor interest because the selected companies serve major urban and industrial regions.
The latest decision signals the government’s broader effort to restructure the energy sector and attract private investment into critical infrastructure services across Pakistan.
