The Pakistan government has announced a comprehensive five-year privatization plan (2024-29), aiming to privatize 24 state-owned institutions in three phases, according to an official document. This plan, prepared by the Ministry of Privatisation and approved by the federal cabinet, outlines a strategic approach to divestment over the coming years.
In the first phase, set to be completed within one year, the government plans to privatize 10 institutions. Key entities slated for privatization include Pakistan International Airlines (PIA) and the Roosevelt Hotel in New York, along with the Agricultural Development Bank, First Women Bank, and House Building Finance Corporation. Additionally, Pakistan Engineering Company, Sindh Engineering Limited, and power distribution companies in Islamabad, Faisalabad, and Gujranwala are also on the list for the initial phase.
The second phase, spanning three years, will see the privatization of 13 institutions. This includes the Utility Stores Corporation and several power distribution companies such as Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), Hyderabad Electric Supply Company (HESCO), and Sukkur Electric Power Company (SEPCO). Peshawar and Hazara Electric Supply Companies are also set to be privatised during this period. Furthermore, power generation companies like Jamshoro Power Company, Central Power Generation Company, Northern Power Generation, and Lakhra Power Generation Company are included in this phase. The privatization of State Life Insurance and Pakistan Reinsurance Company is also planned.
The third and final phase will focus on the privatization of one institution, details of which have not been disclosed.
Finance Minister Muhammad Aurangzeb has reiterated the government’s commitment to completing the privatization of PIA and three power distribution companies (Discos) by the end of 2024. In a recent interview, Aurangzeb emphasized the government’s determination to finalize the privatization of the national carrier and the Discos within the stipulated timeframe.
