The Government of Pakistan has initiated a structured three-phase privatization plan targeting 24 state-owned enterprises (SOEs), including the financially struggling Pakistan International Airlines (PIA). The strategy, approved by the Cabinet Committee on Privatization and finalized during a high-level meeting on August 2, 2024, aims to streamline operations and boost economic efficiency.
A formal list of the entities was presented in the National Assembly, categorized by readiness and priority. Phase one includes nine entities such as PIA, First Women Bank, House Building Finance Corporation, Agricultural Development Bank, and major power distributors including IESCO, GEPCO, and FESCO.
Phase two will focus on institutions like State Life Insurance Corporation, Pakistan Reinsurance Company, and additional electric supply companies including LESCO, MEPCO, and HESCO.
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Phase three will involve only the Postal Life Insurance Company, with its privatization expected within five years.
In a recent parliamentary session, MNA Bashir Khan raised questions about past privatization outcomes. The Parliamentary Secretary responded that PIA’s privatization is on track to be completed by October or November 2025.
A total of 25 SOEs are reportedly ready for privatization, including notable assets like the Roosevelt Hotel and various power generation and insurance companies.
Historically, Pakistan has privatized 178 public sector enterprises, generating approximately PKR 6.49 trillion in revenue.
