Privatisation board okays FESCO restructuring

ISLAMABAD:

The Privatisation Commission Board has approved a restructuring plan for Faisalabad Electric Supply Company (FESCO), as part of the government's broader privatisation agenda.

FESCO, along with Gujranwala Electric Power Company (GEPCO) and Islamabad Electric Supply Company (IESCO), is included in the first phase of distribution companies (DISCOs) slated for privatisation.

The board also declared a consortium led by KPMG, in partnership with Bridge Factor and others, as the most suitable bidder for appointment as financial adviser for the privatisation of House Building Finance Company Limited. A negotiation committee has been formed to finalise the Financial Advisory Services Agreement with the selected consortium. The decisions were taken at a meeting of the board held on Friday under the chair of the prime minister's adviser on privatisation, Muhammad Ali.

The restructuring plan for FESCO, prepared by a financial adviser, aims to improve operational efficiency, enhance service delivery and attract private sector investment. The plan will now be presented to the Cabinet Committee on Privatisation (CCOP) for review and approval. The commission has already invited expressions of interest from local and international investors for the first phase of DISCOs privatisation, marking a key step towards increasing private sector participation in Pakistan's power distribution sector.

The board also reviewed the proposed Transaction Advisory Services Agreement with the Asian Development Bank (ADB) for outsourcing operations of Islamabad International Airport. Under the proposed model, airport operations would be outsourced to a qualified private operator under a long-term concession framework through a transparent and competitive process, aiming to improve operational efficiency and enhance passenger experience.