10 of 12 parties prequalified for Fesco privatisation, K-Electric withdraws

ISLAMABAD: The Privatisation Commission Board on Friday approved the prequalification of 10 out of 12 interested parties (IPs) for the sale of Faisalabad Electric Supply Company (Fesco), after K-Electric (KE) withdrew its papers and a lone Chinese firm failed to demonstrate sufficient interest in the competition.

The development came after Prime Minister Shehbaz Sharif directed the relevant authorities to adopt a “comprehensive strategy” earlier this month to attract international investors for the privatisation of state-owned power distribution companies (Discos) and complete the restructuring of the Privatisation Commission within one month.

Informed sources said KE, the country’s only privatised power utility, had decided to withdraw rather than risk being disqualified due to the non-availability of its financial accounts for the past two years — a key requirement.

They said the company would bid for another distribution company (Disco) as part of a consortium with Shahryar Chishti’s AsiaPak Investments, one of KE’s major shareholders.

“K-Electric has withdrawn its Expression of Interest (EOI) for Fesco’s privatisation,” a KE spokesperson confirmed when contacted. He added that the decision was taken because the Disco’s audited financial statements were not yet available, pending finalisation of the company’s Multi-Year Tariff (MYT), which was beyond KE’s control.

“We remain committed to pursuing opportunities that maximise value for our stakeholders“, he said.

On the other hand, Jiang Xi Electric Power Construction of China did not meet the prequalification criteria, as it filed its EOI in Chinese rather than English on the last day of the deadline, despite repeated requests to submit it in English.

The board meeting, presided over by Prime Minister’s Adviser on Privatisation and Privatisation Commission Chairman Muhammad Ali, approved all other prospective bidders for the next stage. The board was informed that a total of 12 EOIs had been received for Fesco.

After evaluating the submissions against the approved prequalification criteria, the financial adviser recommended 10 IPs for prequalification. Three are from Turkiye — Aktor Elektrik Enerji Yatırımları San ve Tic AŞ, Genvera Enerji AŞ (Celik Group) and Cengiz Enerji Sanayii ve Ticaret AŞ.

The remaining seven Pakistani groups are Engro Energy Limited; Sapphire Fibres Limited, Hub Power Holdings, Lucky Cement and Metro Ventures; Shirazi Investments (Pvt) Limited (Atlas Group); Maple Leaf Cement and Kohinoor Textile; the Pakgen Limited Consortium, comprising Nishat Mills, Nishat Power, Nishat Chunian, Lalpir, Pak Elektron Ltd and Kohinoor Energy; and Artistic Milliners (Private) Limited.

The prequalified parties will now proceed to the next stage of the transaction in accordance with the approved process, including access to the Virtual Data Room (VDR) for detailed buy-side due diligence. The board also approved the reconstitution of its Audit and Risk, Human Resources, Investment and Legal committees.

The commission said the privatisation aims to improve operational efficiency, modernise distribution infrastructure, strengthen customer service, reduce losses and support a more financially sustainable power sector.

Over time, these measures will help create the conditions for more competitive electricity distribution and affordable, reliable power for consumers, it added.

Fesco is among the three electricity distribution companies in Disco Batch-I privatisation, alongside Gujranwala Electric Power Company (Gepco), which attracted 11 EOIs, most of them also in the run for Fesco and Islamabad Electric Supply Company (Iesco). The deadline for submission of EOIs for Iesco is September 7, 2026.

The Privatisation Commission said it would ensure an open, transparent and competitive privatisation process, undertaken in the public interest and in support of the federal government’s wider power-sector reform agenda.

Earlier this week, the National Electric Power Regulatory Authority notified sweeping guaranteed performance and overall performance standards for all Discos after more than two decades, to ensure compliance even after going into private hands under the ongoing privatisation process.

The new Performance Standards (Distribution) Regulations 2026, issued by the regulator after almost two years of consultations with stakeholders, replace the Discos Performance Rules 2005.

Under the new standards, utilities will, for the first time, face mandatory consumer compensation, besides heavy fines, if they fail to meet strict deadlines for restoring power after blackouts, replacing faulty meters, addressing voltage fluctuations, providing new connections and other services.