The federal government has intensified efforts for the timely privatization of Hyderabad Electric Supply Company (Hesco) and Sukkur Electric Power Company (Sepco), sources said. This move comes following demands by the International Monetary Fund (IMF) for swift completion of the process.
Financial advisers appointed for Hesco and Sepco in November 2025 have been directed to complete their assignments within the specified timeframe. The advisers are responsible for conducting detailed due diligence, market assessment, and investor outreach. They must also assist the commission in structuring, marketing, and executing a transparent and competitive bidding process.
Sources confirmed that inspections of both power distribution companies have been completed. Various phases of due diligence reports are now finalized, and the advisers have been instructed to submit their final reports promptly. Officials emphasized that achieving the timely privatization of these utilities is crucial to improve efficiency and reduce financial losses.
The Sukkur Electric Power Company has reported transmission losses of around 35 percent. According to sources, the IMF has strongly urged immediate rehabilitation and timely privatization of both Sepco and Hesco to stabilize the energy sector.
A finance ministry report highlighted the escalating losses of Sepco, which increased by Rs 30 billion by the end of 2024. Hesco’s losses are even higher, soaring to Rs 488 billion during the same period. These figures underscore the urgency for privatization and restructuring of the power companies to improve financial health and service delivery.
The government believes that privatization will enhance efficiency, attract investment, and modernize the distribution networks of Hesco and Sepco. Officials noted that a transparent bidding process will be essential to ensure fair participation of investors.
With the IMF closely monitoring progress, authorities are under pressure to complete the process without delay. Successful implementation of timely privatization could serve as a model for future reforms in Pakistan’s energy sector.
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