Islamabad, 21 May, 2025: Privatisation of PIA has emerged as a key focal point in the ongoing budget negotiations between Pakistan and the International Monetary Fund (IMF) for the fiscal year 2025–26.
As discussions near completion, IMF officials have urged the government to expedite the sell-off of loss-making public sector entities.
According to official sources familiar with the talks, Pakistani authorities have pledged to conclude the restructuring of major government-owned companies by the end of December 2025.
Among the most prominent of these is Privatisation of PIA, which is set to be finalised within this calendar year.
Power Sector Reforms Underway
In line with the broader privatisation agenda, financial advisors have been appointed to oversee the divestment of three major electricity distribution companies: Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO), and Gujranwala Electric Power Company (GEPCO). The process is expected to wrap up by December 2025.
READ MORE: Failure of PIA’s Privatisation
Following this initial phase, a second round of privatisation will include Hyderabad, Sukkur, and Peshawar electric companies, with preparations already underway to prepare these firms for sale.
The Privatisation of PIA is not the only high-profile divestment on the table. The Nandipur Power Plant is slated for privatisation by January 2026, while efforts are progressing to determine the transaction structure for the Roosevelt Hotel in New York.
Banking and Financial Sector Targets
The government also intends to move forward with the privatisation of financial institutions, including First Women Bank Limited and the House Building Finance Corporation (HBFC).
Sources stated that these moves align with the IMF’s condition to reduce the state’s commercial footprint.
READ MORE: PIA Privatisation: Government Confident in Better Bids
Profitable Entities Also Under Review
Authorities emphasised during the consultations that Privatisation of PIA and other ventures are not limited to loss-making units.
The state aims to exit even from profitable entities where private sector efficiency can offer better outcomes.
The IMF has welcomed the government’s roadmap and is expected to link continued financial support with the timely implementation of these structural reforms.
