KARACHI: Pakistan and the International Monetary Fund (IMF) have held virtual economic review talks as efforts intensify to secure the next tranche under the $7 billion loan program.
The IMF has urged swift action on the privatization of key power distribution companies.
During the virtual discussions, the IMF stressed the need to accelerate the rehabilitation and privatization of Sukkur Electric Power Company (SEPCO) and Hyderabad Electric Supply Company (HESCO).
The demand comes as part of ongoing negotiations for a staff-level agreement tied to the loan program.
According to sources, the federal government assured the IMF that it is expediting the privatization process of power distribution companies.
The Privatization Commission confirmed that authorities have been mobilized to complete the privatization of SEPCO and HESCO within the agreed timeline.
Financial advisors given strict targets
The government has directed financial advisors appointed for both companies to complete their assigned targets on time. These advisors were appointed in November 2025 to oversee the privatization process.
Initially, financial advisors were given four major responsibilities for the privatization of SEPCO and HESCO. These included preparing an inspection report, conducting sectoral due diligence, compiling a detailed market review, and producing a report based on global best practices.
Progress made, deadlines tightened
Sources say that several stages of the inspection and due diligence reports have already been completed. However, advisors have now been instructed to finalize their reports on both companies as soon as possible to meet IMF expectations.
The push for privatization comes amid rising financial losses in both companies.
According to the Finance Ministry, SEPCO’s losses increased by Rs30 billion by the end of 2024, while HESCO’s losses surged to Rs488 billion during the same period.
The privatization progress is directly tied to Pakistan’s efforts to reach a staff-level agreement with the IMF for the next tranche of the $7 billion program. Timely reforms in the power sector remain a key condition for continued financial support.
