The federal government has accelerated the privatization process for HESCO (Hyderabad Electric Supply Company) and SEPCO (Sukkur Electric Power Company) following demands from the International Monetary Fund (IMF) for its timely completion, sources said.
Officials have instructed the financial advisers appointed for the two power distribution companies to meet their deadlines. These advisers were brought on board in November 2025 to oversee the planned sell‑off of HESCO and SEPCO, according to the sources.
As part of their mandate, the financial advisers are responsible for conducting thorough due diligence, engaging in market sounding, and carrying out investor outreach. They are also expected to help the relevant commission in structuring, marketing, and executing a transparent, competitive bidding process in line with the government’s privatization framework and regulatory requirements.
The advisers have already completed inspections of both companies and have advanced through several stages of preparing due diligence reports. They have now been instructed to finalize their findings in connection with the planned privatization.
Sources highlighted that SEPCO is facing significant transmission losses, estimated at around 35 percent. The IMF has emphasized the urgent need for rehabilitation and privatization of both SEPCO and HESCO, the sources added.
A finance ministry report noted that losses at SEPCO increased by Rs30 billion through the end of 2024. Another report on state‑owned enterprises showed that HESCO’s cumulative losses have surged to Rs488 billion by the end of 2024.
