ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday directed relevant authorities to adopt a “comprehensive strategy” to attract international investors for the privatisation of state-owned power distribution companies (Discos) and complete the restructuring of the Privatisation Commission within one month.
“A comprehensive and effective strategy should be adopted to ensure the participation of investors meeting international standards in the privatisation of Discos,” the PM said while presiding over a review meeting in Islamabad, according to a statement issued by his office.
But, consumers’ interests should also be prioritised in the privatisation process, he instructed.
The premier further stated that all stages of the privatisation process should be completed within the stipulated timeframes and in accordance with established rules and international best practices while ensuring profitable outcomes.
He also expressed satisfaction over “successful roadshows” in Pakistan and abroad to attract investors, noting that the shows generated interest in the privatisation programme.
Officials at the meeting told the PM that the roadshows aimed at attracting investors for the Gujranwala Electric Power Company (Gepco), Faisalabad Electric Supply Company (Fesco) and Islamabad Electric Supply Company (Iesco) in the first phase of privatisation had been concluded, according to the PMO.
It added that the meeting was told that investor outreach activities and roadshows in Turkey, Saudi Arabia and China had produced encouraging results.
The meeting was also briefed on the progress of the first phase of Discos’ privatisation and efforts to strengthen the Privatisation Commission through institutional restructuring and the recruitment of skilled professionals.
Regarding this, the PM directed that the Privatisation Commission should strengthen its workforce by recruiting experts with qualifications meeting international standards in the fields of finance, law and information technology.
Their expertise would enhance the institution’s capacity and help attract greater investment, he remarked.
PM Shehbaz also directed relevant officials to ensure that recommendations from highly qualified professional consultants were incorporated in the privatisation process and all necessary legal arrangements and financial regulatory frameworks were completed in a timely manner.
Moreover, “consumers’ interests must remain a priority during privatisation and a comprehensive and effective grievance redress mechanism be formed for the consumers of entities being privatised”, he said.
Energy Minister Sardar Awais Ahmed Khan Leghari, Economic Affairs Minister Ahad Khan Cheema, Information Technology Minister Shaza Fatima Khawaja, PM’s Adviser on Privatisation Muhammad Ali and senior government officials attended the meeting, the PMO stated.
On May 19, the Privatisation Commission had invited expressions of interest from local and international investors for the much-delayed sale of three of the country’s most viable electricity distribution companies.
The deadline for submitting EOIs for the partial or full sale of the Discos falls in the first quarter of the next fiscal year.
Fesco, Gepco and Iesco collectively serve more than 14 million consumers across major industrial, commercial and urban centres of Punjab, the Islamabad region, and parts of Azad Jammu and Kashmir.
The transaction offers investors an opportunity to acquire between 51 per cent and 100 per cent shareholding, along with management control, in each of the three distribution companies.
