Govt Plans New Rs. 250 Billion Entity for FESCO, GEPCO, IESCO Sale

Notably, the administration is preparing to establish a new administration owned Special Purpose Vehicle with authorized share capital of Rs.

Key points

• The move follows a July 28 recommendation by the Privatisation Commission Board to approve restructuring intends and schemes of arrangement for the three Discos.
• Based on audited financial statements for the period concluded March 31, 2026, the assets proposed to be transferred to the SPV are valued at Rs.
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• The Privatisation Commission Board has additionally been informed of interest from domestic and international investors.

In practice, the proposed SPV will be applied to carve out selected assets and liabilities of the three power distribution businesses and create a structure that can backing their privatization. The move follows a July 28 recommendation by the Privatisation Commission Board to approve restructuring intends and schemes of arrangement for the three Discos.

Based on audited financial statements for the period concluded March 31, 2026, the assets proposed to be transferred to the SPV are valued at Rs. While liabilities stand at Rs, 350.6 billion. 313 billion. This would leave equity of Rs. 37.6 billion in the proposed structure. Foreign Investors Took $261 Million In Profits Out Of Pakistan In July 2026.

Meanwhile, the restructuring intends are intended to improve the commercial viability of the transactions and maximize value for the administration while making the three Discos more attractive to private sector investors. The Privatisation Commission Board has additionally been informed of interest from domestic and international investors.

In practice, the administration is anticipated to direct NEPRA to register the SPV and a separate pension fund for liabilities associated with employees covered by the restructuring. The registration would allow the relevant pension liabilities of retirees to be recovered through electricity tariffs. The administration additionally intends to allow the lease of land associated with the transactions.

FESCO, GEPCO and IESCO will additionally rise their authorized share capital to Rs. 100 billion, Rs. 75 billion and Rs. 125 billion, respectively. Their combined authorized share capital will therefore reach Rs. 300 billion. The Securities and Exchange Commission of Pakistan is projected to waive the applicable fees on these increases as well as the authorized share capital of the new SPV.

For context, the three Discos have additionally been directed to complete the classification of the land they at present employ into core and non core categories by the end of August. Relevant administration agencies and authorities will be required to provide approvals and take corporate actions needed to implement the restructuring aims and file the schemes of arrangement.

Meanwhile, the administration has already set separate deadlines for expressions of interest from potential investors. As the report notes, the deadline was August 7 for FESCO, August 21 for GEPCO and September 7 for IESCO.

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For now, govt Plans New Rs. 250 Billion Entity for FESCO, GEPCO, IESCO Sale remains the part of the story worth watching, and further updates are likely as more details are confirmed.