ISLAMABAD – IESCO privatisation race is heating up as 10 major investors, including Bestway Cement, Engro Energy, HUBCO and three Turkish energy firms, reportedly been shortlisted to compete for control of electricity distribution company.
Pakistan’s ambitious privatisation drive gathered fresh momentum as Privatisation Commission Board reportedly cleared 10 major local and international investors to compete for Islamabad Electric Supply Company (IESCO), bringing one of the country’s key power distribution companies closer to private ownership.
The development sets stage for major contest involving three Turkish energy companies and some of Pakistan’s most notable business groups, including Engro Energy, Hub Power Holdings, Bestway Cement and Artistic Milliners. The decision was taken during the 260th meeting of the Privatisation Commission Board, chaired by Adviser on Privatisation Muhammad Ali on Thursday, according to details of the proceedings.
The meeting also reportedly approved significant developments concerning three other major state-owned entities, including Faisalabad Electric Supply Company (FESCO), Zarai Taraqiati Bank Limited (ZTBL) and State Life Insurance Corporation of Pakistan.
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IESCO attracted substantial interest from both foreign energy operators and leading Pakistani industrial groups, showing commercial opportunities associated with the government’s proposed electricity distribution reforms.
Among international contenders are Türkiye-based Aktor Elektrik Enerji Yatirimlari, Genvera Enerji and Cengiz Enerji, all seeking to establish or expand their presence in Pakistan’s electricity distribution sector.
The domestic participants include Engro Energy Limited, Artistic Milliners and its consortium partners, Hub Power Holdings and its consortium partners, Sapphire Fibres Limited, Novatex Limited, Bestway Cement Limited and a consortium led by Hasnaat Brothers Construction.
The 10 parties earlier submitted expressions of interest in IESCO, and their reported prequalification means they can now advance to the next stage of the competitive transaction process. The proposed privatisation framework allows for the sale of a controlling stake ranging from 51 percent to 100 percent, together with management control, subject to the final transaction structure and necessary approvals.
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With qualification stage reportedly completed, the prospective investors are expected to receive access to IESCO’s Virtual Data Room, a secure digital platform containing confidential financial, commercial and operational information. Through this facility, bidders will be able to evaluate the company’s financial statements, liabilities, revenue streams, distribution infrastructure, operational performance and other information necessary to assess the investment.
The exercise will allow investors to determine the company’s commercial prospects and identify potential financial and operational risks before preparing their bids. The move represents a significant procedural milestone, but it does not mean IESCO has been sold. The final buyer, transaction value and completion schedule remain undetermined.
The government has placed three major electricity distribution companies at the forefront of its privatisation strategy as it attempts to reduce financial inefficiencies and introduce private-sector investment into the power distribution network.
IESCO, FESCO and Gujranwala Electric Power Company (GEPCO) constitute the first group of utilities being prepared for divestment. Earlier stages of the process attracted 10 expressions of interest for IESCO, 12 for FESCO and 11 for GEPCO.
Privatisation Commission Board reportedly authorised the addition of consortium members to Artistic Milliners’ investment group for the FESCO transaction. Artistic Milliners is among the prominent Pakistani industrial companies participating in the power utility privatisation programme.
Its previously reported consortium partners included The Lake City Holdings, Fatima Capital, Din Ventures and Fazal Cloth Mills. The board’s latest approval is expected to facilitate the consortium’s continued participation in the transaction, although details of the newly approved members have not been independently established.
The board reportedly approved modifications to the privatisation structure and restructuring plan of Zarai Taraqiati Bank Limited, signalling further movement in the government’s efforts to reorganise state-owned financial institutions.
ZTBL, which provides agricultural financing and credit facilities to farmers, is among the institutions included in Pakistan’s 2024–2029 privatisation programme. The proposed restructuring is particularly significant because of the bank’s role in financing agricultural activities and supporting rural borrowers. The precise nature of the reported amendments, including any changes to the proposed transaction model, has not yet been independently confirmed.
Another key decision reported from the meeting concerns State Life Insurance Corporation of Pakistan, one of the country’s major state-owned insurance institutions. Privatisation Commission Board reportedly ranked a consortium led by Deutsche Bank as the leading candidate for appointment as financial adviser to the proposed State Life privatisation.
A dedicated negotiation committee has also reportedly been constituted to finalise the Financial Advisory Services Agreement with the consortium. The financial adviser would play a central role in assessing transaction options, preparing financial evaluations, engaging potential investors and assisting the government throughout the privatisation process.