Privatisation Commission has reportedly decided to offer two power distribution companies Gujranwala Electric Power Company (GEPCO) and Faisalabad Electric Supply Company (FESCO) to the private sector in the first phase of its power-sector privatisation plan.

However, there is no final clarity yet on the mode of privatisation, with well-informed sources indicating that various transaction structures are still under consideration.

Sources said the privatisation of Islamabad Electric Supply Company (IESCO) whether through outright divestment or a long-term concessional model has been put on hold for the time being.

Letters of Interest (LoIs) for GEPCO and FESCO are expected to be issued by the end of the current month, as the government targets completion of the transactions by the end of the ongoing fiscal year, the sources added.

According to the sources, financial adviser Alvarez & Marsal has submitted a report outlining proposed restructuring plans and potential transaction structures. Following stakeholder consultations, the Privatisation Commission is expected to seek approval of the recommended structure and restructuring plan from its board and the Cabinet Committee on Privatisation (CCoP) by the last week of January 2026. After CCoP approval, an Expression of Interest (EOI) is likely to be published by the end of January.

The financial adviser team has already held discussions with officials of the Power Division on the proposed framework, which reportedly raised several issues. Further meetings are expected to refine the transaction structure.

To accelerate the process, a Steering Committee has been constituted to oversee and fast-track the privatisation of DISCOs. The committee has been tasked with coordinating across ministries, streamlining timelines, ensuring regulatory compliance, managing risks, and developing a comprehensive stakeholder communication strategy.

The Steering Committee is required to submit weekly progress reports to the Prime Minister, detailing milestones achieved against set targets through a structured monitoring framework.