Islamabad: The Privatization Commission of Pakistan has presented a comprehensive list of 24 state-owned enterprises (SOEs) marked for privatization, signaling a significant move toward economic restructuring and fiscal efficiency. This list includes key national entities such as Pakistan International Airlines (PIA), State Life Insurance Corporation, and the Zarai Taraqiati Bank Limited (ZTBL).
PIA Privatization to Complete by December 2025
Advisor on Privatization, Muhammad Ali, informed the Senate committee that PIA’s privatization process is underway, with the Expression of Interest (EOI) to be issued this month. Bidders will have the opportunity to conduct due diligence on PIA’s assets starting July, with the process expected to last until September. Although the timeline suggests a December 2025 completion, insiders report that meeting the IMF-mandated July deadline is unlikely.
PIA, once a profitable entity, has been facing financial setbacks for years. The government is re-engaging companies from the previous privatization attempt, allowing them to participate in the current bidding process.
Privatization of 10 Major SOEs in the First Phase
According to the commission, ten SOEs are slated for privatization within a year as part of the first phase. These include:
- Pakistan International Airlines (PIA)
- State Life Insurance Corporation
- Utility Stores Corporation
- First Women Bank Limited
- House Building Finance Company
- Power distribution companies: IESCO, FESCO, and GEPCO
The privatization process for Heavy Electrical Complex and Services International Hotel has already been finalized, while Roosevelt Hotel’s process remains incomplete.
ZTBL Privatization Sparks Concern Among Lawmakers
ZTBL’s inclusion in the privatization list has raised concerns among committee members due to its essential role in supporting the agricultural sector. Described as a “motherly institution” for farmers, ZTBL provides critical financial services to rural communities.
Advisor Muhammad Ali acknowledged the bank’s significant losses and stressed the need for thorough analysis before moving forward. He assured the Senate that ZTBL is still in the early stages of the privatization process and any decision would take into account its recovery issues and future viability.
A proposal was also made to consult with farmers’ organizations, and a letter may be sent to the Prime Minister to express concern over the bank’s future. The Privatization Commission has requested more detailed reports on ZTBL, while the committee plans to summon the bank’s administration and stakeholders for further consultations.
84 SOEs Under Review; PMDC Excluded from Current List
Currently, Pakistan has 84 state-owned enterprises. While 24 are included in the privatization roadmap, 44 others are under the active supervision of the Cabinet Committee on SOEs. Notably, the Pakistan Mineral Development Corporation (PMDC) has been excluded from the list, despite recommendations from the Petroleum Division. However, the Cabinet Committee on Privatization has already approved its privatization, suggesting it may be revisited.
Government Eyes Economic Reforms Amid IMF Obligations
The privatization initiative is part of broader efforts to fulfill obligations made to the International Monetary Fund (IMF), improve fiscal transparency, and reduce the burden of loss-making enterprises on the national exchequer. The Standing Committee on Privatization has decided to continue its consultations, especially concerning sensitive entities like ZTBL, before finalizing any decisions.
