Sindh decides to appoint transaction advisor
ISLAMABAD: The Government of Sindh has decided to appoint a Transaction Advisor for transferring the ownership of two Sindh-based Power Distribution Companies (Discos) to the provincial government for a long-term concession model, after due diligence, well-informed sources told Business Recorder.
The Sindh government conveyed its intention to the Power Division in response to a letter written by Secretary Power Division, Dr Fakhre Alam Irfan, to the provincial government.
In January 2025, Prime Minister Shehbaz Sharif had directed the Power Division to simultaneously pursue two options — provincialisation and privatisation of Power Distribution Companies (Discos) — to ensure that the transactions are completed as committed to development partners.
He instructed the Power Division to thoroughly explore the option of transferring the ownership and control of Discos from the federal government to provincial governments to be undertaken in consultation with the provinces, with a roadmap and timeline prepared for the Prime Minister’s review and approval.
It was also decided that the Power Division would work in parallel on the privatisation of the Discos identified for the first phase — namely, IESCO, FESCO, and GEPCO.
The Power Division has been tasked with adhering to the agreed schedule, completing all necessary actions (conditions precedents) before January 31, 2025.
According to sources, the Power Division has shared the updated status of the privatisation of three Discos and a long-term concessional model for two Sindh-based Discos - Hyderabad Electric Supply Company (HESCO) and Sukkur Electric Supply Company (SEPCO).
“Whatever actions were assigned to the Power Division with respect to Discos are almost on track, and this information has been shared with the visiting Review Mission,” said an official on condition of anonymity.
The Privatisation Commission has to update the IMF on the issue of Discos’ privatisation or long-term concessional agreements.
According to sources, the Privatisation Commission is continuously seeking different documents from the concerned Discos. However, the Discos are sharing requisite documents with hesitation.
On June 18, 2025, during the meeting, the Privatisation Commission Board granted formal approval to initiate the process for the appointment of Financial Advisers (FAs) for enhancing private sector participation in the following power sector entities, including Hyderabad Electric Supply Company, Sukkur Electric Power Company, Peshawar Electric Supply Company (PESCO), and Hazara Electric Supply Company (HAZECO).
On September 22, 2025, Secretary Energy Department, Sindh, Mushtaque Ahmed Soomro, while replying to the letter of Secretary Power Division, cited reference of January 8, 2025, and reminder of September 10, 2025, and stated that a meeting was held on September 22, 2025,under the chairmanship of Chief Minister, Murad Ali Shah. The provincalisation of HESCO and SEPCO was considered, and decided to appoint a Transaction Advisor for transferring the ownership to the provincial government or a long-term concessional model, after due diligence.
The sources said that the KPK government is also considering different options with respect to taking ownership of PESCO and HAZECO.
The Privatisation Commission (PC) has received an update from the Power Division regarding the implementation status of these Conditions Precedent (CPs), including the recognition of various off-balance-sheet liabilities in accordance with applicable financial and corporate reporting requirements.—MUSHTAQ GHUMMAN
