New Approach to Privatization of Power Companies

After disengaging itself from the widespread workers’ protests, the government has embarked on the stalled privatization process. On July 14th, Finance Minister Ishaq Dar summoned a meeting of the members of Cabinet Committee on Privatization to deliberate on the divestment of bleeding public sector units.

Under consideration were the Pakistan Steel Mills, PIA and Power Sector entities. The CCoP approved the sale of residual 40.25pc shares in the stock market listed Kot Addu Power Company Limited (KAPCO). The government called for Expression of Interest (EoIs) in the country’s largest Independent Power Producer (IPP) on July 15. While the investors at the market are looking forward to the prospects of a larger free-float post privatization of Kapco, their joy is the government’s intent to divest part of holdings in power sector entities through the stock exchange.