In what many are calling a critical development, iSLAMABAD: Pakistan will offer a lucrative 18-20 per cent return, along with complete freedom for investors to buy and sell electricity in a competitive market, as it targets the privatisation of three of the most viable distribution companies ( Discos) in October, November and December. “ We will provide in the transaction structure terms and conditions that protect consumer interests but in addition ensure investor comfort. Stakeholders across the nation are closely monitoring the situation.

Context and History

A look at the history of this issue reveals why today's developments carry such weight.

We will do it upfront as part of transaction structure, before bidding ( of the first Disco), otherwise privatisation will not be possible, ” Prime Minister ’ s Adviser on Privatisation Muhammad Ali told Dawn subsequent to a meeting of the Privatisation Commission board, which approved a restructuring proposal for Faisalabad Electric Supply Company – the first of five Discos to be sold in 2026-27.

Mr Ali reported the Privatisation Commission had completed domestic soft marketing of three Discos of Faisalabad, Gujranwala and Islamabad in seven major cities, with chambers of commerce and industry and business houses and would now be expanding abroad mainly to Saudi Arabia, China and Turkiye and approaching other Middle Eastern capitals — Qatar, Bahrain, Oman and so on — virtually and through transaction advisers to tap in investors and technical operators.

Against this backdrop, “ The privatisation programme needs to be marketed globally, ” he confirmed, adding the transactions would be based on financial results as of March 31.

Reactions and Responses

Experts and analysts have begun weighing in on what this means going forward.

Plans to sell profitable Fesco, Gesco and Iesco this year The commission has set July 7 for submission of expressions of interest ( EoIs) for Faisalabad, August 24 for Gujranwala and Sept 7 for Islamabad Electric Supply Company.

Alongside the primary story, “ We will run these three parallel transactions and hold bidding one after the other in October, November and December 2026, ” he indicated, adding the transaction structures would have to be “ corrected ” before October and “ we will do it ”.

Adding further dimension to the story, alongside these three transactions, the PM ’ s adviser said that the Sukkur and Hyderabad electric companies would also be restructured and improved to complete their privatisation by August-September next year.

Policy Implications

The implications are multifaceted, touching on issues of policy, people, and public interest.

The Board of the Privatisation Commission, led by Mr Ali, formally approved the restructuring plan for Fesco.

Against this backdrop, the board also approved the consortium led by KPMG, in association with Bridge Factor and other consortium partners, as the highest-ranked bidder for appointment as financial adviser for House Building Finance Company Ltd. To facilitate the next phase of the transaction, the board constituted a Negotiation Committee to finalise the Financial Advisory Services Agreement with the successful consortium.

Of particular significance is the fact that in another important agenda item, the board reviewed the proposed Transaction Advisory Services Agreement with the Asian Development Bank for the outsourcing of operations at Islamabad International Airport, subject to certain changes in conditions.

It has also emerged that the board appreciated the progress made on the transaction and provided guidance on certain provisions of the proposed agreement, seeking further clarity before its consideration at a subsequent meeting, an official statement said.

Further developments have shed additional light on the matter. the initiative aims to enhance operational efficiency, improve the passenger experience, and align airport services with international best practices.

The Road Ahead

What this development ultimately means remains to be seen. But its significance — both in the immediate term and over the longer horizon — is already being felt by those involved and those watching from the outside.