Government Orders Immediate Asset Documentation for DISCOs Privatization–Notification

Privatization of IESCO, FESCO, and GEPCO: Asset Maintenance and Compliance:

The Government of Pakistan, through the Ministry of Energy (Power Division), is taking significant steps toward the privatization of key power distribution companies, namely the Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO), and Gujranwala Electric Power Company (GEPCO). As part of this process, it is imperative that all movable and immovable assets of these companies are accurately documented and maintained in official registers. This measure ensures transparency, accountability, and efficiency in the privatization process. Proper record-keeping of assets is a crucial step in determining the financial standing of these entities, enabling a seamless transition to private sector management. The valuation of these assets will be conducted by the Financial Advisor overseeing the privatization process, making it essential for the respective power distribution companies to update their asset registers within the next 15 days. By doing so, the government aims to ensure that all records reflect the true value of the assets, preventing discrepancies and facilitating an informed decision-making process. The directive underscores the importance of compliance with these instructions to maintain financial integrity and operational efficiency. All concerned power companies must take immediate action to update and verify their records to meet the required standards. The submission of a compliance report to the Ministry of Energy (Power Division) will serve as a confirmation that the necessary updates have been made in accordance with government directives, ensuring a smooth and transparent privatization process. Notification Describes;

No. 12(09)/2018-DISCO-II
GOVERNMENT OF PAKISTAN
MINISTRY OF ENERGY
(POWER DIVISION)

Islamabad, the January 29, 2025

The CEO IESCO, FESCO, GEPCO.

Subject :-       Movable and Immovable Assets Maintenance Register

               I am directed to refer to the subject noted above and to state that IESCO, FESCO, and GEPCO are included in the first phase of privatization. In this regard, it is necessary that all movable and immovable assets must be properly recorded and maintained in the registers.

2.             It is also directed that these registers should be updated accordingly within the next 15 days, as its valuation will be conducted by the Financial Advisor on privatization.

3.            In this regard, a compliance report shall be submitted to this Division

Deputy Secretary.(DISCOs)

Conclusion:

The maintenance and accurate documentation of movable and immovable assets play a pivotal role in the successful execution of the privatization process for IESCO, FESCO, and GEPCO. As these power distribution companies transition toward private ownership, it is crucial that all assets are properly recorded to facilitate an objective valuation by the appointed Financial Advisor. The government’s directive to update these registers within 15 days reflects its commitment to ensuring a well-organized and transparent privatization process. Failure to comply with these instructions may lead to administrative delays and potential discrepancies in asset valuation, which could impact the overall privatization timeline. Therefore, it is in the best interest of all stakeholders to adhere strictly to the directive and ensure that all asset registers are up to date. This initiative also sets a precedent for accountability and efficiency in future privatization efforts within the energy sector. By maintaining comprehensive records, these power companies can contribute to a smoother transition, reinforcing investor confidence and promoting a more robust energy distribution system in Pakistan. The submission of a compliance report to the Ministry of Energy (Power Division) will serve as evidence that the necessary steps have been taken, ensuring regulatory adherence and financial transparency. Moving forward, continued oversight and diligence in asset management will remain essential as Pakistan advances its privatization agenda to enhance efficiency and service delivery in the power sector.

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