Islamabad: The Cabinet Committee on Privatisation (CCoP), led by the Deputy Prime Minister, has given the green light to a comprehensive restructuring plan for three major electricity distribution companies: Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), and Islamabad Electric Supply Company (IESCO). This decision is part of a broader initiative by the Government of Pakistan to reform the power sector, aiming to create distribution companies that are financially sustainable and better equipped to meet the needs of consumers and industries.

According to the Privatisation Commission, the restructuring plan involves transferring selected assets and liabilities, including land parcels and post-retirement benefits of former employees, to a government-owned Special Purpose Vehicle. The plan is designed to be fiscally neutral and enhance the value for the Government of Pakistan. The government has emphasized that the interests of consumers, employees, and local communities will be safeguarded, with a focus on maintaining service continuity during the transition.

Muhammad Ali, Advisor to the Prime Minister on Privatisation, assured that consumer protection remains a priority, with electricity tariffs continuing to be regulated through the NEPRA process. FESCO, GEPCO, and IESCO, serving over 14 million consumers, are crucial to reducing power tariffs and improving competitive electricity services in Pakistan. The restructuring plan is seen as a significant step toward modernizing and enhancing the accountability of electricity distribution companies.