ISLAMABAD: The Pakistani government has accelerated plans to privatize Hesco and Sepco following strong recommendations from the International Monetary Fund (IMF) to ensure timely completion of the process. Informed sources reveal that the government has instructed its financial advisers to meet upcoming deadlines for these critical transactions.
Appointed in November 2025, the financial advisors are now tasked with conducting comprehensive due diligence, engaging in market assessments, and reaching out to potential investors. Their role includes supporting the government in structuring, marketing, and executing a transparent and competitive bidding process aligned with national privatization policies.
Both Hesco and Sepco have undergone initial inspections and multiple review phases, with advisers now working to finalize their reports. The urgency is driven by alarming statistics: Sepco’s transmission losses are approximately 35%, and losses have reportedly increased by Rs 30 billion in 2024 alone. Hesco’s accumulated losses have surged to nearly Rs 488 billion by the end of 2024, highlighting the critical need for reform.
Sources emphasize that IMF’s push for rapid privatization aims to address these significant financial drains, improve operational efficiency, and reduce the burden on public finances.
