ISLAMABAD: The Pakistani government has expanded its five-year privatization strategy to include three of the country’s largest international airports, along with seven power distribution companies. This move is part of a broader plan to privatize or restructure a total of 25 state-owned entities across three stages.
The updated privatization blueprint now incorporates Jinnah International Airport in Karachi, Islamabad International Airport, and Allama Iqbal International Airport in Lahore into the list of assets targeted for private sector involvement. Notably, these airports were not part of the earlier privatization schedule.
The revised plan, developed under the government’s five-year privatization framework, aims to divest or restructure 25 state-owned enterprises (SOEs) in three phases. The first phase, set to occur over the upcoming year, will focus on 11 entities, including the three airports, Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), the Roosevelt Hotel in New York, Zarai Taraqiati Bank Limited (ZTBL), House Building Finance Company (HBFC), Pakistan Engineering Company (PECO), and Sindh Engineering Limited.
The second phase, spanning one to three years, will target the privatization of entities such as the Utility Stores Corporation (USC), Lahore Electric Supply Company (Lesco), Multan Electric Power Company (Mepco), Hyderabad Electric Supply Company (Hesco), Sukkur Electric Power Company (Sepco), Peshawar Electric Supply Company (Pesco), and Hazara Electric Supply Company (Hazeco). This phase also includes the privatization of Jamshoro Power Company, Central Power Generation Company Limited (CPGCL), Northern Power Generation Company Limited (NPGCL), Lakhra Power Generation Company Limited (LPGCL), along with State Life Insurance Corporation of Pakistan and Pakistan Reinsurance Company Limited (PRCL).
The third and final phase will see the privatization of Postal Life Insurance Company.
Notably, the plan excludes Pakistan International Airlines (PIA) and First Women Bank Limited (FWBL), as the government considers their privatizations to be successfully completed.
This strategic move aligns with the government’s broader economic reforms aimed at reducing the financial strain caused by unprofitable public sector enterprises, boosting operational efficiency, and encouraging private sector investment. It also supports Pakistan’s commitments to structural reforms intended to enhance fiscal stability and promote a more vibrant private sector-driven economy.
