NA Outlines Three-Phase Plan to Privatize 24 State-Owned Enterprises

Pakistan’s National Assembly has received an official list of 24 state-owned enterprises earmarked for privatization under a structured three-phase plan approved by the Cabinet Committee on Privatization. The plan, finalized in a meeting held on August 2, 2024, sets a phased timeline for divestment, ranging from one to five years.

The Ministry of Privatization has divided the process into three categories:

Phase One (within one year): 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), and Sindh Engineering Limited.

Phase Two (within one to three years): State Life Insurance Corporation, Pakistan Reinsurance Company, several power generation companies including Jamshoro, Northern, Central, and Lakhra, as well as electric supply companies from Lahore (LESCO), Multan (MEPCO), Hazara, Hyderabad, Peshawar, and Sukkur.

Phase Three (within three to five years): Postal Life Insurance Company.

During a parliamentary session, member Bashir Khan inquired about progress and revenue from previous privatizations. In response, the Parliamentary Secretary stated that PIA’s privatization is expected to conclude by October or November 2025.

Defence Minister Khawaja Asif added that the government is pursuing a strategic partnership for PIA. However, if unsuccessful, the state may proceed with the full sale of the Roosevelt Hotel in New York, a key asset of the airline.

According to recent updates, a total of 25 public entities are being prepared for privatization, with the Roosevelt Hotel leading the list, alongside various power utilities and insurance providers.