The government has assured the International Monetary Fund (IMF) that it will speed up the privatisation of state-owned enterprises and push forward major structural reforms in the energy and taxation sectors.
Officials say key power distribution companies, including IESCO, GEPCO, and FESCO, will be partially or fully privatized by early 2027.
Under the proposed plan, 51 to 100 percent shares of several electricity distribution companies are expected to be sold to private investors.
The companies include:
- IESCO (Islamabad Electric Supply Company)
- GEPCO (Gujranwala Electric Power Company)
- FESCO (Faisalabad Electric Supply Company)
Authorities also plan to transfer administrative control of these entities to the private sector as part of broader reforms.
If full privatisation of power distribution companies is not feasible, the government is also considering merging some of these entities as an alternative restructuring option.
IMF briefed on broader economic reforms
The government informed the IMF that progress is underway on the privatisation of 27 state institutions.
It also confirmed that agreements for the privatisation of Pakistan International Airlines (PIA) and First Women Bank have already been completed.
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Authorities also shared plans to phase out tax incentives for special economic zones by 2035 as part of long-term fiscal reforms.
The government said it aims to reduce the state’s role in the economy while improving regulatory frameworks, tariff systems, and business conditions.
Focus on fiscal discipline and tax expansion
Officials reaffirmed commitments to:
- Expand the tax net
- Maintain fiscal discipline
- Align electricity and gas prices with actual costs
- Protect vulnerable groups through targeted subsidies
The IMF has emphasized that transparency, anti-corruption measures, and institutional reforms are essential for successful privatisation.
Wholesale electricity market to be launched
The government also announced plans to establish a wholesale electricity market by June.
Initially, 200 megawatts of electricity will be auctioned, with plans to expand this capacity up to 800 megawatts in later phases.
Large industrial users will be able to buy electricity directly from power plants, while paying wheeling charges to DISCOs for transmission access.
Officials confirmed that inefficient power generation companies, including Nandipur and Guddu power plants, are under review for restructuring or privatisation.
Other reforms include:
- Improved coordination between power and gas sectors
- Better LNG consumption planning
- A special system for resolving circular debt
- Performance benchmarking of utility companies
- Monitoring of gas losses and efficiency
The government also highlighted that fuel prices, including petrol and diesel, increased by 20 percent in March due to global market pressures.
Efforts are underway to ensure full cost recovery for imported RLNG from domestic consumers.
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