Pakistan Announces Expanded Privatisation Drive for Power Firms, Banks, Insurance, Airports in Economic Reform Agenda

Finance Minister Muhammad Aurangzeb announced an expanded privatization program during his presentation of the federal budget for fiscal year 2026-27. The government plans to transfer additional power sector entities, banks, insurance companies, and airports to the private sector as part of its economic reform agenda.

Aurangzeb said expressions of interest had already been invited for the privatization of three electricity distribution companies, with the process set to accelerate in the coming months.

The finance minister also announced tax relief measures for salaried individuals, including a reduction in the tax rate on annual salary income ranging from Rs2.2 million to Rs3.2 million and those between Rs3.2 million and Rs4.1 million. The government has also abolished the super tax imposed on businesses, providing major relief for the corporate sector.

These announcements are part of the government’s broader strategy to stimulate economic activity, attract investment, and support private-sector-led growth while continuing structural reforms across key sectors of the economy.