By SKM
June 19, 2026
ISLAMABAD: The government’s privatisation programme moved a step forward on Friday as the Privatisation Commission (PC) Board approved the restructuring plan for Faisalabad Electric Supply Company (FESCO), paving the way for the proposed sale of one of the country’s largest power distribution companies.
The decision was taken at a meeting of the Privatisation Commission Board chaired by Adviser to the Prime Minister on Privatisation Muhammad Ali, which reviewed a number of key transactions under the government’s broader reform and privatisation agenda.
FESCO is part of the first batch of distribution companies (DISCOs) earmarked for privatisation, along with Gujranwala Electric Power Company (GEPCO) and Islamabad Electric Supply Company (IESCO). The restructuring plan, prepared by the transaction’s financial adviser, will now be placed before the Cabinet Committee on Privatisation (CCoP) for approval.
The development comes as the government pushes ahead with plans to attract private investment into the power sector and improve the performance of state-owned enterprises burdened by inefficiencies and financial losses.
Officials said Expressions of Interest (EOIs) have already been invited from local and foreign investors for the privatisation of the first batch of DISCOs, signalling growing momentum in the government’s efforts to bring private-sector participation into electricity distribution.
In another major decision, the Board approved a consortium led by KPMG, in association with Bridge Factor and other partners, as the highest-ranked bidder for appointment as Financial Adviser for the privatisation of House Building Finance Company Limited (HBFCL).
The Board also constituted a negotiation committee to finalise the Financial Advisory Services Agreement (FASA) with the successful consortium, enabling work on the transaction to move forward.
Meanwhile, the Board reviewed progress on the proposed outsourcing of operations at Islamabad International Airport under a long-term concession arrangement. The proposal, being developed with support from the Asian Development Bank (ADB), envisages bringing in a qualified private-sector operator through a competitive bidding process.
Board members welcomed progress on the transaction but sought further clarity on certain provisions of the proposed Transaction Advisory Services Agreement (TASA) before giving final consideration to the arrangement.
The airport outsourcing initiative is aimed at improving operational efficiency, enhancing passenger experience and aligning airport management with international standards and best practices.
The Board also approved the Privatisation Commission’s budget estimates for the 2026-27 fiscal year to support an expanding pipeline of transactions.
Friday’s meeting underscored the government’s renewed push to accelerate privatisation of state-owned enterprises as part of broader economic reforms aimed at attracting investment, reducing the fiscal burden on the public sector and improving service delivery.
The Privatisation Commission said all transactions would be carried out through a transparent and competitive process in accordance with applicable legal and regulatory requirements. Ends
