MEPCO Privatization 2026: What It Means for You
MEPCO has not been sold. On 11 August 2026, the Privatisation Commission Board declared MEPCO’s proposed sale a “major transaction” — a procedural step that only triggers the hiring of a financial adviser. MEPCO sits in Batch IV, the last group in the queue. Your bill, reference number, due date and billing cycle are unaffected by this decision.
Where MEPCO actually sits in the queue
The government split eleven distribution companies into four batches. Batch I (FESCO, GEPCO, IESCO) is years ahead: expressions of interest closed 7 August for FESCO, 21 August for GEPCO, and close 7 September for IESCO. FESCO alone drew twelve bidders from Pakistan, Türkiye and China.
Batch II is HESCO and SEPCO. Batch III is PESCO and HAZECO. LESCO and MEPCO form Batch IV.
Batch I needed audited accounts, a restructuring plan, a Scheme of Arrangement, CCoP approval and international roadshows before bidding could even be scheduled. MEPCO has not completed step one of that sequence.
The split question is separate — and unresolved
In early August the Ministry of Privatisation formed a Technical Committee, chaired by Privatisation Commission Advisor (Power) Sajid Akram, to study whether LESCO and MEPCO should be broken into two or three smaller companies before any sale.
The reason is size. MEPCO is Pakistan’s largest distribution company by consumer base — roughly 8.76 million connections across 13 South Punjab districts, over 82,000 km of lines and more than 780 grid stations. The committee’s remit is feasibility only. No split has been approved.
What stays the same
- NEPRA still sets your tariff. Ownership does not move rate-setting. K-Electric has been privately owned for years and its base tariff, quarterly adjustments and fuel charges are still determined by NEPRA.
- The uniform tariff is government policy. Federal policy is to maintain one consumer-end tariff across all distribution companies and K-Electric after privatisation, funded by subsidy where needed. In August 2026 the Power Minister repeated that the uniform tariff continues for now.
- Your billing route. No change to consumer identifiers or the PITC billing platform has been announced at any stage of the Batch I process, so you can check your bill exactly as you do today.
What is genuinely unsettled
Prospective buyers have asked for an end to the uniform tariff, roughly 18% dollar-indexed returns, freedom to buy and sell power directly, and eight to ten years of tariff visibility. The government has publicly refused dollar-based returns.
The demand that matters to households is the uniform tariff. If it were ever dropped, South Punjab rates could diverge from Lahore or Islamabad rates. That has not been agreed, and no regulator has proposed it.
Employees and pensions
Under the Batch I model, a government-owned Special Purpose Vehicle absorbs selected assets and liabilities before sale — including pension obligations, worth about Rs312 billion across the three Batch I companies as of June 2025. MEPCO’s own restructuring plan has not been drafted, so its staff arrangements are not yet defined.
Why MEPCO was flagged despite improving
Two accurate facts sit side by side. FY2024-25 audits rated MEPCO’s performance unsatisfactory on theft, losses and recovery relative to other Punjab companies. Separately, the Power Division reported a Rs37 billion two-year turnaround, with line losses falling from 15.2% to 11.9% and recovery rising from 98.6% to 100.8%. The audit covers the earlier period; the turnaround reflects later governance and metering reforms.
What to watch, and what to ignore
Four checkpoints signal real movement: appointment of the financial adviser, the bifurcation committee’s report, CCoP approval of a restructuring plan, and an EOI invitation for Batch IV.
Ignore anything asking you to act. No ownership change requires consumers to re-register a meter, verify a connection, or pay a transfer fee. Any message demanding money or your CNIC “for privatisation records” is a scam. Your usage habits still decide your bill — you can test that with the bill calculator.
FAQ
Has MEPCO been privatised?
No. It was declared a major transaction on 11 August 2026; a financial adviser has not yet been appointed.
Will my bill increase?
Not because of this. The uniform tariff and NEPRA rate-setting both remain in place.
When could a sale complete?
No date exists. Batch I, which started far earlier, is only expected to reach bidding in late 2026.
Sources: Privatisation Commission Board statement, 11 August 2026; Ministry of Privatisation committee notification, August 2026; Power Division briefings, July–August 2026.