Pakistan’s power sector is heading toward a major transformation as 12 domestic and international companies have submitted Expressions of Interest (EOIs) for the proposed privatization of Faisalabad Electric Supply Company (FESCO).
The bidders are competing for a 51% to 100% stake in FESCO, along with management control, in what could become one of the country’s most significant moves toward private participation in electricity distribution.
The list reportedly includes major international players such as three Turkish companies—Cengiz Enerji, Genvera and Aktor—along with China’s Jiang Xi Electric. Several major Pakistani business groups have also shown interest, including Nishat Group, Engro, Sapphire, Lucky Cement, K-Electric and Atlas Group.
The government is presenting privatization as a potential solution to some of the long-standing problems facing Pakistan’s electricity distribution system. Private-sector management could bring greater investment, stronger operational controls and improved customer services while helping reduce electricity losses and improve recovery.
One of the biggest challenges is Pakistan’s circular debt, which has been driven in part by transmission and distribution losses, weak recoveries and inefficiencies across the power sector. Supporters of privatization believe stronger commercial management could help address these problems and make distribution companies financially more sustainable.
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However, privatization alone does not guarantee success. The new owners would need to invest heavily in infrastructure, improve billing and recovery systems, reduce technical losses and maintain reliable electricity supplies. Regulators would also have an important role in protecting consumers and ensuring that efficiency improvements do not come at the expense of affordable electricity.
FESCO serves a large customer base across Faisalabad and surrounding areas, making the outcome of this process particularly important for both consumers and businesses.
The government is also looking toward the privatization or restructuring of other distribution companies, including GEPCO and IESCO, meaning the FESCO process could become a test case for wider reforms in Pakistan’s electricity sector.
