ISLAMABAD: A consortium of Pakistani industrial and energy companies has submitted an expression of interest to acquire a controlling stake in Gujranwala Electric Power Company, or GEPCO, as part of the government's broader privatization push, according to reports.
The consortium comprises Lucky Cement Ltd., Hub Power Holding Ltd., Kohat Cement Co. and Metro Ventures (Pvt.) Ltd. The group has been pre-qualified and shortlisted to conduct financial, technical and legal due diligence for a 51% to 100% stake in the state-owned power distribution company.
The government aims to complete GEPCO's privatization by February 2027, following the planned sale of FESCO in January 2027 and IESCO in March 2027, according to a privatization plan shared with the International Monetary Fund.
GEPCO distributes electricity in Gujranwala, Sialkot, Narowal, Gujrat, Mandi Bahauddin and Hafizabad. It stands out among Pakistan's 10 distribution companies, known as DISCOs, for relatively strong operational efficiency. Its transmission and distribution losses stood at 10.6% in fiscal 2025, among the lowest in the sector, while its billing recovery ratio reached 101.5%, above the National Electric Power Regulatory Authority's 100% benchmark and the sector average of 87.5%.
The company reported net sales of 362.7 billion rupees ($1.3 billion) in fiscal 2025, up 8% from a year earlier, driven by a 5% increase in electricity sales and a 44% rise in government subsidies. Lower power procurement costs expanded gross margins by about 8 percentage points, helping GEPCO post a profit after tax of 13.7 billion rupees, compared with a loss of 13.1 billion rupees in fiscal 2024.
The same consortium previously participated in the privatization of Pakistan International Airlines.
As of June 2026, Lucky Cement held 182 billion rupees in cash and liquid assets, compared with 37.2 billion rupees for Kohat Cement and 29.8 billion rupees for Hub Power Holding.
Analysts said they will closely track the privatization process for its implications for the three publicly traded companies.
