ISLAMABAD, August 8, 2026: Eight prominent Pakistani business groups and four foreign companies have expressed interest in acquiring a majority stake in the profitable Faisalabad Electric Supply Company (Fesco), giving the government a fresh opportunity to advance the long-delayed privatisation of power distribution companies.
According to details released by the Privatisation Commission on Friday following the expiry of the extended deadline, a total of 12 groups submitted Expressions of Interest (EOIs) for Fesco. The interested parties include eight Pakistani groups, three Turkish companies and one Chinese firm.
The federal cabinet has authorised the sale of majority or full stakes in three profitable power distribution companies. Fesco, which supplies electricity to Faisalabad and surrounding areas, is among the first companies being offered under the latest privatisation process.
The latest attempt marks the first serious effort to sell Fesco in about a decade. The previous PML-N government abandoned the privatisation process in 2016 shortly before the bidding stage.
Among the Pakistani bidders is a consortium comprising Nishat Mills, owned by businessman Mian Mohammad Mansha, and Pak Elektron Limited (PEL), owned by the Saigol family. Mansha had also participated in the previous privatisation process.
Maple Leaf Cement and Kohinoor Textile, both associated with the Saigol family, have separately submitted expressions of interest.
Other prominent Pakistani groups include Engro Energy Limited, Sapphire Fibres Limited, Hub Power Holdings, Lucky Cement, Shirazi Investments, Artistic Milliners and K-Electric.
The foreign bidders include Turkish companies Aktor Elektrik Enerji Yatırımları, Genvera Enerji and Cengiz Enerji Sanayii ve Ticaret, while China’s Jiang Xi Electric Power Construction has also expressed interest.
The strong response has partly been attributed to the government’s plan allowing technically and financially qualified bidders to participate in the privatisation of other distribution companies if they are unsuccessful in acquiring Fesco. The next companies in the process are Gujranwala Electric Power Company (Gepco) and Islamabad Electric Supply Company (Iesco).
However, concerns remain over the proposed post-privatisation framework. Critics have questioned a proposal to guarantee investors a minimum 13% return, arguing that such a mechanism could encourage inefficiency and discourage technological improvements. Continued uniform electricity pricing after privatisation could also leave the government responsible for significant subsidies.
Privatisation Commission Chairman and Adviser to the Prime Minister on Privatisation Muhammad Ali described the response as an important milestone, saying the strong interest reflected investor confidence in Pakistan’s electricity distribution sector.
The submitted EOIs and Statements of Qualification will now be evaluated against the approved prequalification criteria. Successful applicants will be prequalified and granted access to a virtual data room to conduct detailed due diligence before proceeding to the next stage.
Fesco is part of Discos Batch-I, which also includes Gepco and Iesco. The deadline for submitting EOIs for Gepco is August 21, 2026, while the deadline for Iesco is September 7, 2026.
According to Finance Ministry data, Fesco had total assets worth Rs410.3 billion as of June last year against liabilities of Rs347 billion, giving it positive equity of around Rs63 billion. The company’s profit after tax stood at Rs9.4 billion.
The government says the privatisation programme is aimed at improving operational efficiency, modernising electricity distribution infrastructure, strengthening customer service, reducing losses and creating a more financially sustainable power sector.
