US Eyes Pakistan’s Minerals, Rail Sector
December 28, 2025
Pakistan will now privatize only Gujranwala Electric Power Company outright, while Islamabad Electric Supply Company and Faisalabad Electric Supply Company will be offered as concessions under Prime Minister Shehbaz Sharif’s revised plan.
Read more: Pakistan Launches Competitive Power Market Reform
Pakistan’s federal government has overhauled its power sector privatization strategy under Prime Minister Shehbaz Sharif’s directive from December 15, 2025. Gujranwala Electric Power Company (GEPCO) will now be the sole distribution company offered for outright sale, while Islamabad Electric Supply Company (IESCO) and Faisalabad Electric Supply Company (FESCO) will transition to long-term concession agreements instead.
Power Minister Sardar Awais Ahmad Khan Leghari has been tasked with resolving property transfer bottlenecks delaying the process. The Privatization Commission expects to issue Letters of Intent by January 2026. Alvarez & Marsal, serving as transaction adviser, has completed sectoral due diligence identifying structural challenges.
Phase two targets include Lahore Electric Supply Company Limited, Multan Electric Power Company Limited, and Hazara Electric Supply Company (HAZECO) for privatisation, while Hyderabad Electric Supply Company, Sukkur Electric Power Company (SEPCO), and Peshawar Electric Supply Company (PESCO) will operate under concessions. Tribal Areas Electric Supply Company (TESCO) and Quetta Electric Supply Company (QESCO) require performance improvements before potential management contracts.
