The Privatisation Commission (PC) Board gave approval on Friday of a transaction committee for private sector participation in three govt-owned power distribution companies (DISCOs).
The decision was taken in the 233rd meeting of the PC Board, Privatisation ministry said.
The board gave approval of a transaction committee for the private sector participation in the Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), and the Islamabad Electric Supply Company (IESCO), it said.
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The government is looking to privatise the DISCOs for several interconnected reasons, largely tied to economic challenges, inefficiencies in the energy sector, and pressure from international lenders like the International Monetary Fund (IMF).
However, Shehbaz-led government has failed to privatise any entity as yet despite setting a Rs30 billion privatisation target in the budget for the financial year 2024-25.
In January this year, media citing sources reported that Prime Minister Shehbaz Sharif had directed the Power Division to simultaneously pursue two options— provincialisation and privatisation of DISCOs to ensure that the transactions as committed to development partners.
Later in February, the government’s ministerial committee recommended to sell DISCOs to the private sector, arguing that transferring DISCOs to provinces would merely shift the problem from one government to another.
Last month (March), the financial advisors briefed the Power Division and Privatisation Commission on private sector participation in the three DISCOs, sources told media.
In the Friday’s meeting, the PC board also discussed various transaction structure options developed by the financial advisor, a consortium led by Jones Lang La Salle Americas Inc (JLL) for privatisation of Roosevelt Hotel Corporation (RHC), New York and finalised its recommendations for the transaction structure for presentation to the Cabinet Committee on Privatisation (CCOP).
Meanwhile, the board decided to cancel the bidding process for appointment of a financial advisor for privatisation of the Zarai Taraqiati Bank Ltd (ZTBL) “due to bids being on the higher side” and directed to advertise again for hiring the services of a financial advisor, the ministry statement said.
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