Investors from the Arab world have shown an interest in privatisation process of power sector entities, the sources continued. According to the privatisation plan submitted to the International Monetary Fund (IMF) for fourth and fifth reviews, the government has committee that 100 per cent strategic assets of two Discos - Faisalabad Electric Supply Company (Fesco) and Islamabad Electric Supply Company (Iesco) - will be sold to the private sector by end August 2015 whereas strategic and asset sale of Lahore Electric Supply Company (Lesco) will be offered to private sector by the end of October, 2015.
Pakistan's economic team headed by Finance Minister, Senator Ishaq Dar, who is currently in Dubai for talks with the IMF for sixth review, has reportedly committed to selling 100 percent strategic assets of Northern Power Generation Company (NPGCL) by end August 2015. Strategic and asset sale of Saudi Arabia-based National Power Construction Company (NPCC) will be completed by next month.
The sources said, several investors have shown an interest in the power sector companies and Privatisation Commission will shortly issue Request For Proposals (RFP). In the first phase Financial Advisors (FAs) will be appointed for different entities which are being offloaded, the sources continued. Privatisation Commission headed by Muhammad Zubair has already sought Expression of Interests (EoIs) for financial advisory services for Lakhra Power Generation Company Limited ( LPGCL), Jamshoro Power Company Limited (JPCL), Quetta Electric Supply Company (Qesco), Sukkur Electric Power Supply Company (Sepco) and Hyderabad Electric Supply Company(Hesco).
In December 2015, a two-day GoP consensus building strategy workshop on privatisation of power sector entities was organized at Islamabad. Representatives from "regulator", line ministry, Planning Commission, Discos, Gencos, PPIB, Pepco & NTDCL besides the Privatisation Commission attended the workshop. The sources further stated that privatisation needs 6-9 months time for the completion of the entire process inclusive of due diligence, technical evaluation of interested parties/companies, etc.
"Though employees of Discos are pressurising the government through agitation across Pakistan not to privatise, we are determined to offload all the entities as per plan," the sources maintained. The sources said that the Prime Minister's office has also directed the Privatisation Commission to put the privatisation of Oil and Gas Development Company (OGDCL), Mari Gas and other gas companies on ice because of unprecedented reduction in oil prices at the global level. Finance Minister Senator Ishaq Dar will assure the IMF in Dubai that the privatisation process will be completed as per commitment barring a new political upheaval, said another official on condition of anonymity.