IESCO privatisation advances as 10 investors qualify for next stage

ISLAMABAD: Pakistan’s planned sale of Islamabad Electric Supply Company has moved forward after the Privatisation Commission approved 10 investors for the next stage. A report published early Friday confirmed the shortlist, which includes Turkish companies and Pakistani businesses seeking participation in the electricity distribution transaction.

The approval came at the commission’s 260th board meeting, chaired by Muhammad Ali, the prime minister’s adviser on privatisation. Qualified applicants will receive access to a virtual data room for detailed examination of the company before the process advances. Prequalification allows further participation; it does not establish a winning buyer or complete the sale.

The Turkish participants include Aktor Elektrik, Genvera Enerji and Cengiz Enerji. Pakistani applicants include Engro Energy, Sapphire Fibers, Novatex and Bestway Cement, alongside consortia associated with Artistic Milliners, Hub Power Holding and Hasnaat Brothers Construction. The shortlist brings individual companies and groups of investors into the next phase.

The commission described the participation as evidence of investor interest in Pakistan’s distribution sector. Its board also approved additional members for the Artistic Milliners consortium already qualified for the Faisalabad Electric Supply Company transaction, subject to the applicable requirements. IESCO, FESCO and Gujranwala Electric Power Company form the first batch of distribution companies selected for privatisation.

Earlier parliamentary scrutiny provides context for what the proposed sales involve. At a September 17 briefing, the National Assembly’s privatisation committee was told that the approved structure envisaged divesting between 51 and 100 per cent of each distribution company’s shares, together with management control. This was the proposed framework, rather than confirmation of an executed transfer.

The committee stressed transparent competition, appropriate valuation and a defensible reserve price. It also called for continuing oversight by the electricity regulator and periodic financial and performance audits after privatisation. Those requirements identify issues beyond attracting bidders: how public assets are valued and how the resulting operators are monitored.

Employee protections have also featured in parliamentary deliberations. At an August meeting, the committee recommended safeguarding existing workers’ employment status, service rights and legitimate interests under applicable rules. For readers assessing the transaction, the documented concerns therefore extend to both operational accountability and the treatment of staff.

The next announced step for the shortlisted IESCO investors is examination of company information through the data room. The reported decision identifies neither a successful purchaser nor an agreed sale price. Further progress will depend on completion of the remaining transaction stages.