Govt offers 20pc returns to woo buyers

ISLAMABAD: Pakistan will offer a lucrative 18-20 per cent return, along with complete freedom for investors to buy and sell electricity in a competitive market, as it targets the privatisation of three of the most viable distribution companies (Discos) in October, November and December. “We will provide in the transaction structure terms and conditions that protect consumer interests but also ensure investor comfort. We will do it upfront as part of transaction structure, before bidding (of the first Disco), otherwise privatisation will not be possible,” Prime Minister’s Adviser on Privatisation Muhammad Ali told Dawn after a meeting of the Privatisation Commission board, which approved a restructuring plan for Faisalabad Electric Supply Company – the first of five Discos to be sold in 2026-27. Mr Ali said the Privatisation Commission had completed domestic soft marketing of three Discos of Faisalabad, Gujranwala and Islamabad in seven major cities, with chambers of commerce and industry and business houses and would now be expanding abroad mainly to Saudi Arabia, China and Turkiye and approaching other Middle Eastern capitals — Qatar, Bahrain, Oman and so on — virtually and through transaction advisers to tap in investors and technical operators. “The privatisation programme needs to be marketed globally,” he said, adding the transactions would be based on financial results as of March 31. Plans to sell profitable Fesco, Gesco and Iesco this year The commission has set July 7 for submission of expressions of interest (EoIs) for Faisalabad, August 24 for Gujranwala and Sept 7 for Islamabad Electric Supply Company. “We will run these three parallel transactions and hold bidding one after the other in October, November and December 2026,” he said, adding the transaction structures would have to be “corrected” before October and “we will do it”. The uniform consumer tariff will continue for the time being, but privatisation, resulting efficiency gains, and the absorpti