Government Prepares to Open Three Distribution Companies to Private Bids
Pakistan is actively seeking experienced international private investors, with a particular focus on Turkish companies, for the upcoming privatization of its power distribution companies (Discos). The government is preparing to open the first three Discos—Iesco, Fesco, and Gepco—to private investment, with an Expression of Interest (EOI) ready for issuance.
Power Minister Sardar Awais Ahmed Khan Leghari confirmed that bids would be invited soon, following a meeting with Türkiye’s Minister for Energy and Natural Resources, Alparslan Bayraktar. Leghari emphasized that the participation of Turkish companies, given their extensive experience, was considered crucial for the process.
Replicating the Turkish Model and Deepening Bilateral Ties
The minister praised Türkiye’s largely private-sector-driven power market and stated that Pakistan aims to replicate elements of its model, particularly the concessional frameworks that help attract private capital. Leghari also requested Türkiye’s technical assistance in developing Pakistan’s Integrated Energy Plan.
In response, Minister Bayraktar welcomed Pakistan’s reform initiative, noting that Turkish investors were “keenly following” the Discos’ privatization. He expressed hope for “reasonable participation” by Turkish firms once bidding commences. Both sides agreed to organize investment roadshows in Türkiye to attract potential bidders.
Expanded Energy and Mining Cooperation
In a parallel development, Pakistan and Türkiye have agreed to deepen cooperation across the energy sector. Following talks between petroleum ministers, Turkish Petroleum (TPAO) announced it would open an office in Islamabad this month.
The collaboration was solidified with the signing of five petroleum concession agreements, expected to bring in approximately $300 million in investment. The signing ceremony was held in the presence of Prime Minister Shehbaz Sharif and Minister Bayraktar.
Key agreements include:
- Enhanced cooperation in oil and gas exploration, energy infrastructure, and mining.
- Plans to explore forming a joint petroleum trading company.
- Turkish interest in Pakistan’s mining sector, following the recent Minerals Investment Conference.
Minister Bayraktar described the agreements as “the first tangible, solid projects” for bilateral cooperation and stated they would help achieve a shared $5 billion trade target. He confirmed that a Turkish mining company is exploring entry into Pakistan’s sector, impressed by its mineral potential.
