Gujranwala Electric Power Company Limited (GEPCO) has proposed increasing its authorised share capital from Rs. 50 billion to Rs. 75 billion, marking a 50 percent rise as the government moves forward with its privatization agenda. The proposal follows directions from the Cabinet Committee on Privatization and is expected to be considered at the company’s upcoming extraordinary general meeting.
According to an official notice issued by GEPCO, the proposal will be presented at the company’s 34th Extraordinary General Meeting scheduled for October 22, 2026. The development comes as Pakistan continues to consider changes to the ownership and management of state-owned enterprises, including companies operating in the power sector.
The proposed increase would raise GEPCO’s authorised share capital limit by Rs. 25 billion. If approved, the company would be permitted to issue shares with a total nominal value of up to Rs. 75 billion, compared with the existing limit of Rs. 50 billion.
Each share has a stated face value of Rs. 10. Under the current limit, GEPCO can issue up to five billion shares. The proposed revision would increase that maximum to 7.5 billion shares, providing the company with greater flexibility regarding its capital structure.
However, the proposed change should not be interpreted as an immediate injection of funds into GEPCO. An increase in authorised share capital simply expands the maximum amount of share capital a company is permitted to issue. It does not automatically result in the issuance of additional shares or generate new revenue.
The company’s notice has not specified whether GEPCO intends to issue additional shares following approval of the proposal. It has also not disclosed the potential amount of funds that could be raised or explained how any future proceeds might be used.
The distinction is important because an increase in authorised capital can serve as a preparatory corporate measure without immediately changing a company’s financial position. Any actual fundraising would depend on subsequent decisions, the issuance of shares and the applicable corporate and regulatory requirements.
GEPCO’s proposal follows directions from the Cabinet Committee on Privatization, placing the capital revision within the broader context of the government’s privatization plans. Adjustments to a state-owned company’s capital structure may be relevant when authorities assess its financial framework and prepare for possible ownership changes.
Nevertheless, the capital increase alone does not confirm the timing, structure or final terms of any privatization involving GEPCO. Further official announcements would be needed to establish how the proposal fits into the government’s overall strategy for the company.
The October 22 extraordinary general meeting will be an important step in determining whether shareholders approve the proposed revision. The outcome could clarify the company’s authorised capital position and provide a basis for any subsequent corporate decisions.
For electricity consumers and stakeholders in Pakistan’s power sector, the proposal is worth monitoring as discussions about state-owned power distribution companies continue. However, the immediate impact on electricity tariffs, service quality, investment or company operations cannot be established from the capital proposal alone.
The key development is that GEPCO wants to increase its authorised share capital by Rs. 25 billion, from Rs. 50 billion to Rs. 75 billion, ahead of potential privatization-related developments. Whether the change leads to additional share issuance or new investment will depend on decisions taken after the proposal is considered.