IMF demands Hesco Sepco privatisation, prompting the federal government to speed up efforts to sell the two power distribution companies.
Officials have directed financial advisers of Hyderabad Electric Supply Company (Hesco) and Sukkur Electric Power Company (Sepco) to complete their work within the required timeline.
The government appointed financial advisers for both companies in November 2025. Their role includes conducting due diligence, assessing market interest, and engaging potential investors.
Additionally, advisers must support the privatisation commission in structuring and executing a transparent bidding process. Sources confirm that several inspection phases and due diligence reviews have already been completed.
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Authorities have now instructed advisers to finalise their reports. These reports will play a key role in moving the privatisation process forward. The government aims to ensure compliance with its privatisation framework and regulatory requirements.
The urgency behind the move stems from significant financial losses in both companies. Sepco’s transmission losses stand at around 35 per cent. A finance ministry report also indicates that Sepco’s losses increased by Rs 30 billion by the end of 2024.
Meanwhile, losses at Hesco have reached approximately Rs 488 billion, according to a report on state-owned enterprises.
The International Monetary Fund has urged Pakistan to take swift action. It has emphasised the need for both rehabilitation and privatisation of Hesco and Sepco.
These reforms are part of broader efforts to address inefficiencies in the energy sector and reduce the financial burden of state-owned enterprises.
