The Government of Pakistan has initiated a comprehensive three-phase privatization strategy targeting 24 state-owned enterprises (SOEs), including several financially struggling institutions such as the national airline. The move follows approval from the Cabinet Committee on Privatization and was officially presented in the National Assembly.
This phased plan, finalized in a high-level meeting on August 2, 2024, categorizes SOEs based on their readiness for privatization. In the first phase, nine entities are set to be privatized, including Pakistan International Airlines (PIA), First Women Bank, House Building Finance Corporation, and the Agricultural Development Bank.
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Major electricity distribution companies like Islamabad Electric Supply Company (IESCO), Gujranwala Electric Power Company (GEPCO), and Faisalabad Electric Supply Company (FESCO) are also included in this stage.
The second phase will cover institutions such as State Life Insurance Corporation, Pakistan Reinsurance Company, and additional power distributors including Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), and Hyderabad Electric Supply Company.
In the third and final phase, only the Postal Life Insurance Company is listed, with plans to privatize it over the next five years.
During a recent National Assembly session, Member Bashir Khan raised questions about the outcomes of previous privatization initiatives. In response, the Parliamentary Secretary stated that the privatization of PIA is projected to conclude between October and November 2025.
Additionally, reports suggest that 25 SOEs are now ready for privatization, among them the Roosevelt Hotel and multiple power generation and insurance companies.
Historically, Pakistan has privatized 178 state-run enterprises, generating approximately PKR 6.49 trillion in revenue.
