The privatisation initiative is part of a broader economic reform agenda that Pakistan has committed to in exchange for financial support from the IMF.
ISLAMABAD: Pakistan announced plans to privatise its power distribution companies beginning in 2025, in order to address financial troubles of its energy sector.
The move aligns with Pakistan’s “commitment” to the International Monetary Fund (IMF) to implement reforms aimed at stabilising its debt-laden energy sector.
The Privatisation Commission Board approved a plan to complete the legal formalities for the privatisation by January 2025. This will involve a comprehensive process that includes regulatory adjustments and administrative arrangements necessary for the transition.
As part of the initial phase, the board will actively seek to appoint a financial adviser who will facilitate the sale of three major utilities. The financial adviser will play a critical role in evaluating the companies, structuring the transactions, and managing the sale process to attract potential buyers.
Details regarding the specific utilities that will be privatised in this first phase have not yet been disclosed. The privatisation commission’s announcement did not provide further information on the selection criteria for the utilities or the expected timeline for their sale beyond the initial legal and procedural deadlines.
The proposal is also set to undergo review by the Cabinet Commission on Privatisation, which will assess and approve the plan before any final actions are taken.
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The privatisation initiative is part of a broader economic reform agenda that Pakistan has committed to in exchange for financial support from the IMF.
The reform is intended to improve the efficiency of the power sector, reduce financial burdens on the government, and improve overall sector performance.
