Pakistan seeks Turkish investors to privatize Discos

• Energy Minister Awais Leghari says bids will be invited soon.
• The government is preparing to open the first three discos for private investment.
• Pakistan and Turkey agree to deepen oil and gas cooperation.
  

Pakistan is seeking experienced international private investors, particularly from Turkey, to participate in the upcoming privatization of its electricity distribution companies.

Energy Minister Sardar Awais Ahmed Khan Leghari said tenders will be invited soon as the government prepares to open the first three Distribution Companies (Discos) to private investment. The News reported on Wednesday.

He made the statements after a meeting with Turkey’s Minister of Energy and Natural Resources, Alparslan Bayraktar.

Leghari said that the participation of Turkiye companies, with their vast experience, is considered very important. The Expression of Interest (EOI) for the first three privatization of Discos (Iesco, Fesco and Gepco) is ready to be issued, he said.

The minister praised Turkey’s electricity market which relies heavily on the private sector and appreciated the Turkish government for facilitating study visits by Pakistani energy experts.

He said Pakistan aims to replicate elements of the Turkish model, especially the concession frameworks that have helped attract private investment. He said the Electricity Department is working on an Integrated Energy Plan and wants Turkey’s technical assistance in its formulation, citing Ankara’s successful planning experience.

Bayraktar welcomed Pakistan’s reform drive and said Turkish investors are “watching” the privatization process of Discos. He expressed hope for “reasonable participation” from Turkish companies once bidding begins.

Both sides agreed to organize investment roadshows in Turkey to attract potential bidders. Bayraktar noted that Türkiye was already a big investor in Pakistan, particularly in mining, a sector closely linked to energy development, and described Pakistan’s electricity market as very important for Turkish businesses.

In a related development, Pakistan and Turkiye have agreed to deepen their cooperation in oil and gas, energy infrastructure and mining, as Turkish Petroleum announced it will open an office in Islamabad this month, officials said.

The agreement was reached during talks between Federal Oil Minister Ali Pervez Malik and Turkey’s Energy and Natural Resources Minister Alparslan Bayraktar, who led a high-level delegation including senior officials of the Turkish Petroleum Corporation (TPAO).

The CEOs of Mari Energies, OGDCL and PPL briefed the meeting on their projects, including OGDCL’s work on Reko Diq, its shale gas pilot and tight gas initiatives, and invited Turkish companies to participate as technology and joint venture partners.

Bairaktar said this was his third visit to Pakistan in a short period of time and that he returned with “the first tangible, concrete projects” for cooperation. He said Turkey is planning new joint ventures in oil and gas exploration, energy infrastructure and mining to help achieve the joint bilateral trade target of $5 billion.

Addressing the Pakistan Minerals Investment Conference, Bayraktar said Pakistan’s mineral potential had impressed Turkish investors and confirmed that a Turkish mining company was exploring entering the sector.

Both sides decided that Turkish Petroleum will open its office in Islamabad this month with 10 Turkish nationals and local staff. They also agreed to explore the establishment of a joint oil trading company and strengthen investment facilitation and project cooperation.

In another development, the Turkish Petroleum Overseas Company (TPOC) signed five petroleum concession agreements (PCAs) with Pakistan, including three offshore and two onshore blocks.

The deals, which are expected to result in a total investment of $300 million, officially mark TPOC’s entry into Pakistan’s oil and gas exploration sector alongside the country’s leading exploration and production companies.

The signing ceremony was held at the Prime Minister’s Office in the presence of Prime Minister Sehbaz Sharif and Turkish Minister of Energy and Natural Resources Alparslan Bayraktar. Senior officials from the ministries of petroleum and energy also attended.