The progress of the DISCO privatisation process will now depend on the relevant government forums and the Privatisation Commission, as well as the response of prospective investors. Turkish participation could add another dimension to the process, particularly if it translates into long-term investment, improved management practices and stronger technical capacity. For consumers, however, the ultimate measure of the reforms will be whether they result in a more reliable, financially sustainable and better-managed electricity distribution system. Pakistan and Türkiye have reaffirmed their commitment to strengthening cooperation in the energy sector, with particular emphasis on reforms in Pakistan’s electricity distribution system and the ongoing privatisation of Distribution Companies (DISCOs).
The understanding emerged during a meeting between Ambassador of Türkiye to Pakistan Dr Irfan Neziroglu and Federal Minister for Energy (Power Division) Sardar Awais Ahmad Khan Leghari on Friday. The two sides discussed Pakistan’s power-sector reform agenda, progress on the privatisation of DISCOs and the potential role of Turkish investors in the process.
The meeting comes at a time when the government is seeking to address longstanding structural and financial challenges in the power sector. Poor distribution performance, governance issues, electricity losses and financial pressures have remained major concerns for successive governments. The proposed greater involvement of the private sector is being pursued as part of wider efforts to improve efficiency and service delivery.
According to the Power Division, the government has already completed the necessary policy, reform and institutional work required for the privatisation of DISCOs. The formal process is now being advanced through the relevant government forums and the Privatisation Commission.
Leghari told the Turkish ambassador that the government’s reforms are aimed not merely at transferring ownership, but at improving the overall performance of the electricity distribution system. The broader objective, he said, is to ensure financial sustainability, strengthen governance and provide better services to electricity consumers through effective private-sector participation.
The minister also highlighted the existing institutional framework between Pakistan and Türkiye in the energy sector. He referred to three memorandums of understanding signed between key energy institutions of the two countries during his recent visit to Türkiye. The agreements cover areas including electricity markets, transmission and distribution and are intended to provide a basis for closer institutional cooperation. Such arrangements could help facilitate the exchange of technical expertise, regulatory experience and investment opportunities between the two countries.
An important aspect of Friday’s meeting was the interest shown by Turkish companies in Pakistan’s DISCO privatisation process. Leghari welcomed their participation and said Turkish firms possess valuable experience and expertise in the energy sector.
Pakistan has increasingly looked towards international investors and strategic partners as it attempts to improve the performance of its power distribution network. Turkish companies, with their experience in energy infrastructure and utilities, could potentially bring technical expertise and investment to the sector if they participate successfully in the privatisation process.
The minister also expressed appreciation for the continued interest of Turkish investors and their engagement with Pakistan’s privatisation programme. The discussions reflect the broader economic relationship between Pakistan and Türkiye, in which energy cooperation has emerged as an important area of mutual interest. For Pakistan, attracting credible investment while improving the efficiency and financial sustainability of the power sector remains a significant policy challenge.