Sapphire Fibres seeks entry into IESCO privatisation
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Sapphire Fibres Limited has applied to the Privatisation Commission to join the transaction process for the Islamabad Electric Supply Company, marking its third bid after previously entering the privatisation races for FESCO and GEPCO. The government is offering between 51% and 100% shareholding alongside management control for IESCO, FESCO, and GEPCO under its first batch of power distribution privatisations. To prepare the entities, selected assets and liabilities are being transferred to a government-owned Special Purpose Vehicle to create commercially viable transaction structures. The Privatisation Commission extended the deadline for Expressions of Interest for IESCO to September 21, 2026, to allow adequate time for investor due diligence. Operating under improved performance metrics that saw line losses drop from 8.75% to 7.6% over two years, IESCO forms part of a broader state initiative to attract private capital, improve distribution efficiency, and strengthen financial sustainability across Pakistan's power sector.
Sapphire Fibres Limited has joined the race for the privatisation of Islamabad Electric Supply Company (IESCO), expanding the textile company’s interest in Pakistan’s electricity distribution sector.
The company disclosed the development to the Pakistan Stock Exchange on Friday, saying its board had approved participation in the transaction after obtaining the Request for Statement of Qualification (RSOQ) issued by the Privatisation Commission.
Sapphire Fibres clarified that the decision does not create any binding obligation at this stage. Its participation remains subject to prequalification by the Privatisation Commission and all required corporate and regulatory approvals. The company may also form a consortium once the relevant approval is secured.
IESCO is among the three distribution companies included in the government’s first batch of DISCO privatisations, alongside FESCO and GEPCO. The government is offering investors between 51% and 100% shareholding with management control in the companies.
Sapphire Fibres has already shown interest in the other two DISCO transactions. It entered the FESCO privatisation process in August and subsequently joined the race for GEPCO. The company was among the investors that expressed interest in GEPCO, where the government received 11 EOIs.
The government has been restructuring FESCO, GEPCO and IESCO before their proposed privatisation. Under the approved framework, selected assets and liabilities will be transferred to a government-owned Special Purpose Vehicle (SPV) to create commercially viable transaction structures.
For IESCO, the Privatisation Commission extended the deadline for submission of Expressions of Interest to September 21, 2026, giving prospective investors additional time for due diligence and participation.
IESCO has also reported an improvement in its operational performance, with line losses declining from 8.75% to 7.6% over the past two financial years. The government’s broader DISCO privatisation programme is aimed at attracting private investment, improving efficiency, reducing losses and strengthening electricity distribution services.
The entry of Sapphire Fibres adds another major Pakistani business group to the pool of potential investors as the government moves towards the next stage of the IESCO transaction.
