Five of Pakistan’s major business groups have joined forces with Türkiye’s Cengiz Holding in a joint venture to bid for the privatisation of three electricity distribution companies — Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO) and Islamabad Electric Supply Company (IESCO). The agreement was signed in Istanbul and reported on November 9, 2026.
What happened?
- The Pakistani consortium comprises Fatima Group, Lake City, Artistic Milliners (Pvt.) Ltd., DIN Group and Fazal Group, with business interests spanning fertilisers, textiles, construction, mining, aviation, real estate and energy.
- The joint venture was formed to pursue investment opportunities arising from the privatisation of FESCO, GEPCO and IESCO, the first batch of distribution companies being offered for sale.
- Together, the groups report a combined workforce of more than 145,000 across their wider operations — over 100,000 in the Pakistani groups and about 45,000 at Cengiz Holding.
- Cengiz Holding brings experience in managing electricity distribution networks in Türkiye through CK Enerji, along with a power generation portfolio of more than 5,600 megawatts.
- The agreement is not itself a purchase. The consortium must still take part in competitive bidding and obtain the necessary regulatory and government approvals, and the shareholding structure, financial commitments and governance arrangements have not been publicly disclosed.
- The move follows the Privatisation Commission’s October 22 decision to prequalify 10 parties for IESCO, including Cengiz Enerji and the Artistic Milliners-led consortium. The commission received 12 expressions of interest for FESCO, 11 for GEPCO and 10 for IESCO, and the transaction framework contemplates the sale of controlling stakes of between 51% and 100%, with management control.
What it means for people in Pakistan
If the consortium succeeds in the bidding, it would bring foreign investment and international distribution experience into three utilities that serve millions of households and businesses across Punjab and Islamabad. Better-run distribution companies could mean fewer losses in the power system and, over time, more reliable electricity supply — though any sale still has to clear the competitive bidding process and regulatory approvals first.
Source: https://www.brecorder.com/news/40448075
