Who is Bidding for IESCO? Full List of Turkish Energy Giants and Pakistani Tycoons

ISLAMABAD – A major battle for one of key power distribution companies quietly begun. IESCO is now drawing serious interest from 10 major investors, including Turkish energy giants and some of Pakistan’s biggest corporate groups, all eyeing a stake of up to 100% along with management control.

With EOI deadline now closed, the race to take over IESCO is officially moving to its next stage. Pakistan’s electricity distribution sector is heading toward a major shake-up as 10 investors and business groups have entered the race to acquire 51% to 100% of IESCO along with management control, setting the stage for closely watched privatization battle.

The deadline for submission of Expressions of Interest (EOIs) closed on September 21, 2026, opening the next chapter in the government’s ambitious plan to bring private ownership and management into the country’s distribution companies. IESCO is one of three DISCOs selected for the government’s first privatization batch, alongside FESCO and GEPCO.

Turkish Energy Giants

Three Turkish companies have submitted EOIs for IESCO. It includes Aktor Elektrik Enerji Yatırımları San. ve Tic. A.Ş., associated with the broader Aktor infrastructure and energy group, which has interests in construction, renewables and other energy-related businesses.

Genvera Enerji A.Ş. is also seeking entry into the transaction. The third Turkish bidder is Cengiz Enerji Sanayii ve Ticaret A.Ş., part of the powerful Cengiz Holding group.

Cengiz Energy has a diversified power portfolio spanning hydro, solar, wind and thermal generation, while its wider group has substantial electricity-distribution operations in Türkiye, including BEDAŞ and other distribution companies.

The appearance of all three Turkish firms is particularly significant because they have also shown interest in Pakistan’s other Batch-I DISCO transactions.

Pakistan’s Corporate Heavyweights

Seven Pakistani companies and consortiums have also thrown their hats into the ring. Among them is Engro Energy Limited, while the Artistic Milliners Consortium brings together Artistic Milliners, Lake City Holdings, Fatima Capital, Din Ventures and Fazal Cloth Mills.

Hub Power Holding Consortium includes Hub Power Holding, Lucky Cement, Kohat Cement and Metro Ventures. Sapphire Fibres Limited, a major textile-sector player, is also among the interested parties. The company has separately expressed interest in FESCO and could potentially pursue a consortium structure.

Other applicants include Novatex Limited and Bestway Cement Limited. Hasnaat Brothers Construction Consortium is another Pakistani group, comprising Hasnaat Brothers Construction, Dhilal Holding Group, Pak Steel, Bio-Labs and Farid Steel Casting.

The submission of EOIs is only the beginning. Privatisation Commission will now examine the applicants and their Statements of Qualification against the prescribed prequalification requirements.  The process will then move toward bidding and the selection of a successful investor.

The government is betting on private-sector management to tackle some of the electricity distribution system’s biggest problems.

For years, Pakistan’s DISCOs have struggled with line losses, electricity theft, poor bill recovery, inefficient operations and financial pressures linked to circular debt. The proposed private-sector model is designed to bring fresh investment and management expertise while improving collections, reducing losses and upgrading distribution infrastructure.

The government also hopes that private participation will ultimately reduce the financial burden carried by the state.

DISCO privatization drive forms part of Pakistan’s wider economic reform agenda, including commitments under the country’s IMF-supported programme, which emphasizes SOE reforms, energy-sector restructuring and a smaller direct commercial role for the government.

IESCO is not being offered as just another struggling state-owned utility. The company has comparatively stronger operating indicators, making it one of the most closely watched assets in the first privatization batch.

IESCO supplies electricity to Islamabad, Rawalpindi, Jhelum, Attock and Chakwal, as well as parts of Azad Jammu and Kashmir. Its service territory covers roughly 23,200 square kilometres, serving approximately 4.1 million consumers. The company has also improved several key performance indicators. Its line losses have fallen to around 7.6%, compared with an earlier reported figure of approximately 8.75%.

IESCO has also recorded recovery rates at or above 100% during several recent periods, alongside revenue improvements and intensified anti-theft operations. Network modernization has continued as well, including smart-meter deployment and distribution-system upgrades.

Under the proposed transaction, investors can seek anywhere between 51% and 100% of IESCO’s share capital. The deal also includes full management control, meaning the successful investor could potentially take complete ownership and operational command of the company.

The government has appointed Alvarez & Marsal Middle East Limited as the financial adviser for the transaction. But before handing over the company, authorities are restructuring its balance sheet and assets.

Another potentially significant feature of the transaction is the proposed approach to investor returns. Rather than relying exclusively on conventional regulated returns, discussions have included a performance- and KPI-linked model. Under the proposed framework, investor returns could be connected to improvements in areas such as loss reduction, bill recovery and operational efficiency.

Discussions have reportedly considered returns in the mid-to-high teens in rupee terms, depending on performance and the eventual regulatory structure.

At the same time, authorities are working on reforms involving the tariff structure, multi-year tariff regime and competitive electricity-supply framework to support private participation.

The government has also taken the privatization campaign beyond Pakistan. International roadshows have targeted investors from Türkiye, Saudi Arabia, China and other markets, while domestic industrial groups are examining the DISCOs as potential diversification opportunities. The strong response to IESCO follows investor interest in the other two Batch-I companies.

Despite the investor interest, the privatization process still faces hurdles. Potential buyers will have to assess tariff structures, regulatory certainty, legacy circular-debt issues, political considerations and the operational challenges associated with electricity theft and bill recovery.

Iesco Privatisation Draws Strong Interest from Local, Foreign Investors