ISLAMABAD, Aug 24 (APP):The Cabinet Committee on Privatization (CCoP) has approved the restructuring plan for the first batch of electricity distribution companies - Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO) and Islamabad Electric Supply Company (IESCO). The meeting was chaired by the Deputy Prime Minister Senator Mohammad Ishaq Dar, said a press release issued by the Privatization Commission on Monday. The decision is an important step in …
CCoP approves restructuring plan for batch-I DISCOs, advancing reliable, consumer-focused power distribution
ISLAMABAD, Aug 24 (APP):The Cabinet Committee on Privatization (CCoP) has approved the restructuring plan for the first batch of electricity distribution companies – Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO) and Islamabad Electric Supply Company (IESCO).
The meeting was chaired by the Deputy Prime Minister Senator Mohammad Ishaq Dar, said a press release issued by the Privatization Commission on Monday.
The decision is an important step in the government’s wider power-sector reform agenda: to build distribution companies that are financially sustainable, professionally managed, digitally enabled and better equipped to serve households, businesses and industry.
Under the approved plan, selected assets, including all land parcels and selected liabilities including post-retirement benefits of already retired employees along with the material amount of fund, will be carved out to a Government of Pakistan-owned Special Purpose Vehicle (SPV), while the retirement benefits of current employees will remain with DISCOs. Inter-governmental receivables and payables will also be net-off to settle GOP reveivables.
The Restructuring Plan is fiscally neutral, prepared with the objective to enhance the value for Government of Pakistan (GoP), ensuring that the transaction is viable.
The government recognizes that consumers, employees, industry and local communities have a direct stake in these reforms. Service continuity will remain paramount throughout the process. Employee interests will be addressed in accordance with applicable law and transaction arrangements, while stakeholders will be kept appropriately informed as the next stages of the process proceed.
Muhammad Ali, Adviser to the Prime Minister on Privatization, stated, “Consumers will remain protected under Pakistan’s regulatory framework. Electricity tariffs will continue to be determined through the applicable NEPRA process and notified by the Government, while the reform process will seek measurable improvements in reliability, efficiency and customer service.”
FESCO, GEPCO and IESCO collectively serve more than 14 million consumers in major industrial, commercial and urban centres. Strengthening their performance is therefore central to reducing power tariffs and supporting more competitive electricity service for Pakistan’s economy.
The approval of the restructuring plan marks a decisive move from managing legacy constraints to building modern, accountable and consumer-oriented electricity distribution companies for the future.
