Turkish investors eye Pakistan’s power distribution sector
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Pakistan has welcomed increasing investment interest from Turkish companies in the privatisation of its electricity distribution companies during high-level discussions between Federal Minister for Energy Sardar Awais Ahmad Khan Leghari and Turkish Ambassador Dr Irfan Neziroglu in Islamabad. The engagement follows prior diplomatic consultations in Türkiye focused on private investment, regulatory frameworks, and institutional reforms within Pakistan's energy sector. Under the initial privatisation phase, FESCO, GEPCO, and IESCO are being offered to private investors with 51% to 100% shareholding and management control, collectively serving over 14 million consumers. Progress reports indicate that 10 parties have been prequalified for FESCO, 11 expressions of interest are under evaluation for GEPCO, and the IESCO process has advanced past its application stages. The ongoing structural reforms aim to enhance operational efficiency, improve corporate governance, and reduce systemic financial losses through direct private-sector participation.
Pakistan has welcomed growing interest from Turkish investors in the privatisation of its power distribution companies (DISCOs), as Islamabad seeks to attract private capital and expertise to improve the performance of the electricity distribution sector.
The development came during a meeting between Federal Minister for Energy (Power Division) Sardar Awais Ahmad Khan Leghari and Turkish Ambassador to Pakistan Dr Irfan Neziroglu on Friday. The two sides discussed ongoing power-sector reforms, progress on DISCO privatisation and opportunities for greater Turkish investment in Pakistan’s energy sector.
Leghari said the Power Division had completed the required policy, institutional and reform work for the privatisation programme, while the formal transaction process was being taken forward through the relevant government forums and the Privatisation Commission.
The government is pursuing the DISCO reforms to improve operational efficiency, strengthen financial sustainability, enhance governance and improve electricity services through greater private-sector participation.
Pakistan has initially placed FESCO, GEPCO and IESCO in the first batch of DISCO privatisation. Investors are being offered the opportunity to acquire between 51% and 100% shareholding along with management control. The three companies collectively serve more than 14 million consumers.
Turkish participation has been part of Pakistan’s efforts to attract international investors. Earlier this year, Pakistani officials held high-level consultations in Türkiye focused specifically on electricity-distribution privatisation, private investment and regulatory and institutional reforms.
The Turkish ambassador said Turkish companies have a keen interest in investment opportunities in Pakistan’s energy sector and that their participation in the DISCO privatisation process could further strengthen economic ties between the two countries.
The latest development comes as Pakistan moves into the evaluation and prequalification stages for the first batch. The National Assembly’s Standing Committee on Privatisation was informed on September 17 that 10 parties had been prequalified for FESCO, while 11 expressions of interest/statements of qualification for GEPCO were under evaluation and the IESCO process had been completed.
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