Government Moves Closer to Privatization of FESCO
The Privatization Commission Board has approved a restructuring plan for Faisalabad Electric Supply Company (FESCO), bringing the utility company a step closer to privatization.
The decision was taken in a meeting chaired by the Adviser to the Prime Minister on Privatization, Muhammad Ali. The approved plan, prepared by the financial adviser to the transaction, will now be submitted to the Cabinet Committee on Privatization for further consideration.
FESCO is included in the first group of power distribution companies identified for privatization, along with other regional electricity providers. The process is part of broader government efforts to improve efficiency, reduce operational losses, and increase private sector participation in the power sector.
Officials said expressions of interest have already been invited from both local and international investors for the planned sale of selected distribution companies.
In a separate development, the Privatization Commission also approved the selection of a consortium led by KPMG as financial adviser for the privatization of the House Building Finance Company Limited (HBFCL). A committee has been formed to finalize the advisory agreement.
The board additionally reviewed proposals related to the outsourcing of operations at Islamabad International Airport under a long-term concession model. However, further clarification was sought on certain aspects before a final decision is made.
Authorities say the ongoing privatization initiatives aim to improve service delivery, enhance operational efficiency, and align key public sector institutions with international standards.
