Plans to privatize the power distribution companies have been delayed to almost a year. The government was determined to privatize them, but with the delay it seems uncertain whether the government would privatize unprofitable state enterprises.
The sale of Faisalabad Electricity Supply Company, Fesco, has been delayed from August 2015 to March 2016. Similarly, sale of Lahore Electricity Supply Company, Lesco, and Islamabad Electricity Supply Company, IESCO, has been delayed from October 2015 to June 2016.
Non resolution of regulatory and labor issues is the main reason for the delay of privatization according to Privatization Commission Chairman, Mohammad Zubair. On the other hand, the IMF is optimistic that the companies will be privatized since it had set a condition on its $6.6 billion bailout that November 2015 would be the deadline to determine the multi-year tariffs for Fesco, Lesco, and IESCO. The government will determine the multi-year tariffs on these companies before they get privatized. This will help reduce the tariff uncertainty for these companies. The IMF will monitor the amount of tariff set.