Sapphire Fibres Limited has entered the race for the privatisation of Faisalabad Electric Supply Company (FESCO) after obtaining the Request for Statement of Qualification (RSOQ) issued by the Privatisation Commission.

According to a notice submitted to the Pakistan Stock Exchange (PSX), the company's Board of Directors has approved participation in the proposed transaction.

However, Sapphire Fibres clarified that it has not yet assumed any binding obligation, as its participation remains subject to pre-qualification by the Privatisation Commission and all required corporate and regulatory approvals.

The company further stated that it may form a consortium after receiving the necessary approvals to participate in the privatisation process.

The announcement comes a day after a Nishat Group-led consortium, comprising several listed companies, also confirmed its participation in the FESCO privatisation process.

Last year, Sapphire Fibres Limited completed the acquisition of a 50% stake each in UCH Power (Private) Limited, a 586MW gas-fired power plant, and UCH-II Power (Private) Limited, a 404MW gas-fired power plant, both located in Dera Murad Jamali, Balochistan.

FESCO is among the electricity Distribution Companies (DISCOs) selected by the government for privatisation, alongside Islamabad Electric Supply Company (IESCO) and Gujranwala Electric Power Company (GEPCO), as part of broader energy sector reforms aimed at improving operational efficiency, reducing losses, and attracting private investment.

The federal cabinet had approved the outright privatisation of the three DISCOs in August 2024, while the deadline for submission of Expressions of Interest (EOIs) for FESCO was recently extended to August 7, 2026.