CCoP Approves Restructuring Plan For Batch-I DISCOs, Advancing Reliable, Consumer-focused Power Distribution
ISLAMABAD, (APP - UrduPoint / Pakistan Point News - August 24, 2026) 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)
- Islamabad Electric Supply Company (IESCO).
The meeting was chaired by the Deputy Prime Minister Senator Mohammad Ishaq Dar, according to a press release issued by the Privatization Commission on Monday.
This decision is a significant step in the government’s power-sector reform agenda, aiming to create financially sustainable and professionally managed distribution companies with digital capabilities to better serve households, businesses, and industry.
Under the approved plan:
- Selected assets, including land parcels, will be carved out to a Government of Pakistan-owned Special Purpose Vehicle (SPV).
- Retirement benefits of current employees will remain with DISCOs.
- Inter-governmental receivables and payables will be netted off to settle GOP receivables.
The restructuring plan is fiscally neutral, designed to enhance the value for the Government of Pakistan (GoP) while ensuring a viable transaction.
Muhammad Ali, Adviser to the Prime Minister on Privatization, emphasized:
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 aim for measurable improvements in reliability, efficiency, and customer service.
FESCO, GEPCO, and IESCO collectively serve over 14 million consumers in major industrial, commercial, and urban centers. Strengthening their performance is crucial to reducing power tariffs and fostering a more competitive electricity service for Pakistan’s economy.
The approval of the restructuring plan marks a pivotal shift from managing legacy challenges to building modern, accountable, and consumer-oriented electricity distribution companies for the future.