Pakistan
Pakistan Announces Phased Privatisation Plan Covering 24 State-Owned Entities
Pakistan announces phased privatisation plan targeting 24 state-owned entities over the next five years, with Pakistan International Airlines (PIA), Roosevelt Hotel, and First Women Bank included in the first phase.
In a written statement to the National Assembly, Minister for Privatisation Abdul Aleem Khan outlined the three-phase roadmap.
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He said the aim is to improve efficiency and reduce the fiscal burden of loss-making enterprises. “The phased approach will ensure transparency, attract credible investors, and align with regulatory requirements,” he added.
According to the plan, Pakistan announces phased privatisation plan beginning with 10 entities to be privatised within 12 months.
These include PIA, Roosevelt Hotel (New York), First Women Bank, House Building Finance Corporation, Zarai Taraqiati Bank Limited (ZTBL), and three electricity distribution companies (DISCOs), including Islamabad Electric Supply Company (IESCO).
The second phase, spanning the next three years, will involve 13 more entities. This group includes State Life Insurance Corporation, Utility Stores Corporation, four generation companies (GENCOs), and six additional DISCOs, such as Lahore Electric Supply Company (LESCO).
The third and final phase will see the privatisation of Postal Life Insurance Company, expected to be completed within five years.
The updated privatisation plan also addresses PIA’s financial situation.
Any successful bidder for the airline will be required to inject Rs70 billion over five years to support restructuring and operations.
This follows a failed privatisation attempt in 2024, when the government rejected bids for a 60% stake after receiving offers far below the Rs85 billion target.
The government says the broader reform effort is tied to reducing reliance on subsidies and improving service delivery across key sectors.
Officials believe that privatisation, carried out in phases, will build investor trust and ensure a smoother transition.
