Pakistan commits to selling nine state power distributors by 2027 under IMF plan

Pakistan has briefed the International Monetary Fund on a plan to privatise nine state-owned electricity distribution companies by December 2027, after the first batch of three firms is expected to be sold by March. The power distributors collectively lost PKR299bn in fiscal year 2025 and required PKR551bn in subsidies, amounting to an annual cost of PKR850bn. The first three companies—Faisalabad Electric Supply Company, Gujranwala Electric Power Company and Islamabad Electric Supply Company—are currently in due-diligence and slated for sale in January, February and March respectively.

The Privatisation Commission said Hyderabad and Sukkur distributors will follow between April and June, with Peshawar, Hazara, Lahore and Multan slated for disposal by the end of 2027, while Quetta Electric Supply Company is left out of the scheme. Under the approved structure, land and pension liabilities of the initial three will be transferred to a special purpose vehicle, and a uniform nationwide electricity tariff will remain in place for both privatised and state-run entities. The IMF has questioned whether the chosen sale model will curb the chronic losses that persist despite subsidies.