Islamabad – In a strategic move to offload non-functional power assets, the federal government has approved the transfer of several obsolete power plants managed by GENCO Holding Company Limited (GHCL) to Wah Industries, following multiple failed auction attempts, official sources confirmed.
Despite earlier efforts to privatise the defunct assets through competitive bidding, the government was unable to secure concrete commitments from winning bidders. The first phase of auctions, conducted in March 2025, attracted offers worth Rs 9.05 billion—exceeding the reserve price of Rs 8.07 billion—but no agreements were finalized, and no payments were made by bidders.
A second phase launched in May, targeting larger power stations including the Jamshoro (880 MW), Muzaffargarh (1,350 MW), and Faisalabad (132 MW) plants, also failed to generate adequate interest. Only one firm submitted a bid for the Jamshoro site, while the other plants received no bids at all.
Citing consistent lack of investor response and delays in formalising asset disposal, the government has now opted for a government-to-government (G2G) arrangement. The deal with Wah Industries, a state-run defense enterprise, is expected to be finalised by the end of July 2025.
Officials said the transfer will help eliminate recurring maintenance costs, free up land for redevelopment, and improve transparency in the disposal of non-operational state assets. The move comes as part of broader reforms under the energy ministry’s directives and the oversight of the Special Investment Facilitation Council (SIFC).
Earlier this year, CEOs of three GENCOs were suspended for mishandling the privatisation process, highlighting deeper governance challenges in managing legacy infrastructure.
This story has been reported by PakTribune. All rights reserved.