ISLAMABAD: Federal government has budgeted Rs 86.550 billion collection from privatization proceeds in the next fiscal year which is 981.8 percent higher than the revised estimates of current fiscal year’s Rs 8 billion.
The government budgeted Rs 30 billion privatization proceeds originally for the ongoing fiscal year 2024-25.
The International Monetary Fund’s (IMF’s) first staff-level report uploaded on its website on May 17, 2025 projected zero revenue from privatisation from 2019-20 till 2030 while it underscored the government’s commitment to prioritising privatisation of commercial profitable state-owned entities (SOEs) supported by completion of the SoE privatisation classification.
Govt aims to privatise up to 50 SOEs in next 3-4 years: minister
The IMF is urging federal government to expedite the divestment of government-run institutions and reduce state influence in the commercial sector. Pakistani authorities informed the IMF that the rightsizing of public sector entities will be completed by December 2025.
The government has extended the deadline for Expressions of Interest (EoI) for the privatization of Pakistan International Airlines (PIA) to June 19, 2025. This is an extension from the original deadline of June 3, 2025. The government is looking to sell a majority stake (51% to 100%) in PIA through privatization. The previous attempt to privatize PIA in 2024 failed to attract multiple bidders.
A financial adviser has also been appointed for the privatization of three major electricity distribution companies: Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO), and Gujranwala Electric Power Company (GEPCO). The target is to complete the privatization of these companies by December 2025. In the second phase, the government plans to privatize the Hyderabad, Sukkur, and Peshawar electricity distribution companies.
Meanwhile, the privatization of the Nandipur Power Plant has been scheduled for January 2026. Efforts are also under way to privatize other government-owned commercial assets, including the Roosevelt Hotel in New York, the First Women Bank, and the House Building Finance Corporation (HBFC). The Privatization Commission confirmed that the transaction structure for these entities is being finalized.
According to officials, the privatization of profitable public enterprises remains a top priority in line with the government’s broader goal of reducing state involvement and attracting private investment.
Copyright Business Recorder, 2025
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