Pakistan hires consultants to support privatization of power distribution companies
Pakistan has hired a consortium of management consulting firms to help privatize three major power distribution companies.
The agreement is part of Pakistan’s broader privatization drive to reform the power sector that has been plagued by circular debt, operational inefficiencies and power theft. The reform agenda, which is an important part of the nation’s $7 billion loan program with the International Monetary Fund, includes the divestment of state-run power companies.
The Privatisation Commission has signed a financial advisory agreement with a consortium led by Alvarez & Marsal, and further includes International Consulting Associates (iConsult), Yousuf Adil Chartered Accountants, Vellani & Vellani, Power Planners International, and NEOS Advisory.
The deal marks a key step in the planned privatisation of the Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), and Islamabad Electric Supply Company (IESCO).
“This strategic initiative aligns with the government’s commitment to improving efficiency, reducing losses and ensuring long-term sustainability in the power distribution sector,” the Privatization Commission said in a statement.
Under the agreement, the financial advisory group will conduct due diligence, investor outreach, transaction structuring, and assist in the bidding process to facilitate private sector participation in these three major power distribution companies.
The privatisation of the power distribution companies is expected to be completed by the end of 2025.
