Islamabad, May 13, 2025: In a major move signaling a shift in economic policy, the Government of Pakistan has launched a detailed roadmap for the privatization of 24 state-owned enterprises (SOEs), as confirmed by a recent Cabinet Committee meeting.
This bold step aims to reduce the financial burden on the public sector, improve efficiency, and attract private investment.
Three-Phase Privatization Strategy Explained
The Ministry of Privatization has broken down the process into three clear phases:
Phase One (within 1 year):
Entities scheduled for immediate privatization include:
- Pakistan International Airlines (PIA)
- First Women Bank
- House Building Finance Corporation
- Agricultural Development Bank
- Pakistan Engineering Company (PECO)
- Islamabad Electric Supply Company (IESCO)
- Gujranwala Electric Power Company (GEPCO)
- Faisalabad Electric Supply Company (FESCO)
- Sindh Engineering Limited
Phase Two (1–3 years):
- State Life Insurance Corporation
- Pakistan Reinsurance Company
- Multiple power generation and electric supply firms including LESCO, MEPCO, and PESCO
Phase Three (3–5 years):
- Postal Life Insurance Company
Focus on PIA and Roosevelt Hotel
The centerpiece of the first phase is PIA’s privatization, which the Parliamentary Secretary confirmed is expected to conclude by October-November 2025.
In a recent National Assembly session, Defence Minister Khawaja Asif revealed that if the government’s plan for a strategic partnership fails, the Roosevelt Hotel in New York—a key asset under PIA—may be sold entirely.
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Historical Context and Financial Impact
Since the inception of the privatization program over three decades ago, 178 SOEs have been sold, yielding a combined revenue of PKR 6.49 trillion.
The current plan adds 25 more entities to that track, including prominent power utilities and insurance firms.
Economic analysts have welcomed the plan but warn that transparent execution is critical. “Privatization can unlock efficiency, but only if handled with accountability and clear investor guidelines,” said economist Dr. Ayesha Khan.
