Islamabad Capital Territory

Islamabad | ReNews Pakistan
As Pakistan’s privatisation programme for electricity distribution companies moves forward, prospective investors are assessing not only the value and profit potential of the DISCOs but also the regulatory, tariff and investment risks associated with acquiring and managing the utilities.

Under the first phase of the programme, the government is seeking private sector participation through the acquisition of 51% to 100% shareholding, together with management control, in Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO) and Islamabad Electric Supply Company (IESCO). Official records show that 12 Expressions of Interest were received for FESCO, 11 for GEPCO and 10 for IESCO, with evaluation and prequalification processes progressing at different stages.

The experience of K Electric is likely to remain an important reference point for prospective investors. As one of Pakistan’s major privately owned power companies, K Electric’s experience demonstrates the potential for private ownership to bring investment and operational changes, while also highlighting the importance of regulatory and tariff decisions to the business model of a distribution utility.

An investor can influence operating costs, electricity losses, collections and network investment, but cannot independently determine the tariff through which these investments and costs are recovered. Tariffs, investment recognition, performance benchmarks and other elements of the revenue model remain subject to the regulatory process.

K-Electric’s tariff experience also highlights the significance of regulatory timelines and reviews. According to NEPRA’s record, notifications issued on September 23, 2026 covered review decisions relating to K Electric’s multi year tariff for its distribution function for FY2023 24 to FY2029 30, underlining the importance of a predictable long term regulatory framework.

For prospective DISCO investors, the issue is therefore not only how long tariff decisions may take, but also how investments made today will be recognised under the regulatory framework and how returns on those investments will be determined. Electricity distribution companies require continuing investment in feeders, transformers, grid stations, meters, automation and other network infrastructure.

The Privatisation Commission’s market sounding and investor engagement process is also intended to assess potential investors’ expectations, concerns and views regarding the post privatisation regulatory regime. The commission has said its financial adviser has undertaken due diligence, market sounding, investor outreach and work on transaction structures for the DISCO privatisation programme.

For the government, a key aspect of the DISCO privatisation process is to establish a framework that balances private investment, operational efficiency and consumer interests with greater predictability in regulatory decisions and clarity over the protection and recovery of investment.

Islamabad | ReNews Pakistan
The Asian Development Bank (ADB) and World Bank have expressed interest in financing Pakistan’s $6.68–$6.80 billion Main Line-1 (ML-1) railway project, a major infrastructure initiative aimed at upgrading the country’s busiest rail corridor between Karachi and Peshawar.
The Economic Affairs Division briefed the National Assembly’s Standing Committee on Economic Affairs on the project, outlining the proposed financing structure and the latest revisions to its design and cost.
According to the briefing, the ADB is being considered as the lead financing institution, while the Asian Infrastructure Investment Bank (AIIB) and World Bank have indicated commitments for co-financing. The European Investment Bank (EIB), Islamic Development Bank (IsDB) and Japan International Cooperation Agency (JICA) have also expressed interest in supporting the project.
ML-1 covers approximately 1,800 kilometres of railway line from Karachi to Peshawar and is intended to go beyond conventional rehabilitation and track-upgradation works. The project also incorporates institutional, operational and management reforms designed to improve the efficiency, financial sustainability and service delivery of Pakistan Railways.
The project was recently reassessed to identify gaps in its design and incorporate improvements before implementation. Following the reassessment, the estimated cost was revised to between $6.68 billion and $6.80 billion, substantially lower than the earlier estimate of approximately $9 billion.
Under the revised plan, ML-1 infrastructure is being designed to accommodate train speeds of up to 160 kilometres per hour, while the currently envisaged operational speed is up to 120 kilometres per hour.
The construction period has been targeted at approximately three years, although the final implementation schedule would depend on project approvals, financing arrangements, procurement and construction requirements.
Members of the National Assembly committee, however, raised questions over the proposed operational speed and called for the project to make full use of modern railway technologies and international standards.
The committee stressed that infrastructure and operational specifications should be developed in a manner that allows trains to operate at speeds of up to 160 km/h wherever technically and economically feasible.
The ML-1 project is regarded as a major component of efforts to modernise Pakistan’s railway network, improve passenger and freight services and strengthen the operational capacity of Pakistan Railways. Its implementation would also require coordination among the government, international financing institutions and railway authorities on technical standards, institutional reforms and long-term operational sustainability.

Islamabad | ReNews Pakistan
President Asif Ali Zardari, on the advice of Prime Minister Shehbaz Sharif, has approved the Islamabad Capital Territory Safe City Camera and Surveillance Infrastructure Protection and Damage Compensation Ordinance.

Under the ordinance, financial penalties may be imposed for damaging Safe City cameras or surveillance infrastructure, as well as for inciting or encouraging such damage.

In case of damage to a Safe City camera or surveillance infrastructure, a fine of up to Rs2 million may be imposed per camera or infrastructure facility.

The ordinance also provides that organisers may be held responsible for damage caused to Safe City cameras or surveillance infrastructure during rallies, processions, sit-ins, protests, strikes or other gatherings.

The legal measure aims to protect Islamabad’s civic surveillance system and related infrastructure from damage and provide a mechanism for compensation in case of loss or damage.