ISLAMABAD: The federal government has set the privatization target of Rs 160.500 billion for fiscal year 2026-27. This represents a massive surge from the current fiscal year’s revised estimate of just Rs 14.257 billion, which fell short of its original Rs 86.550 billion budgetary projection.
To achieve next year estimates, the government is relaying on the privatisation of major state-owned enterprises (SOEs), including Pakistan International Airlines (PIA), power distribution companies (DISCOs), and key financial institutions.
In a major legislative breakthrough this month (June 2026), President Asif Ali Zardari signed the PIA Conversion (Repeal) Bill into law, clearing the final legal hurdles for the national flag carrier’s complete privatization. This follows the late-2025 landmark transaction where a consortium led by Arif Habib Corporation acquired a majority stake in the airline.
The government is also rolling out the privatisation of its first batch of DISCOs, which includes: Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO) and Gujranwala Electric Power Company (GEPCO).
The Privatisation Commission has already issued Expressions of Interest (EOIs) for these power utilities, aiming to close the transactions by late 2026.
The First Women Bank has officially achieved financial close. Additionally, the Privatisation Board has also approved the transaction structures for both the Zarai Taraqiati Bank Limited (ZTBL) and the Roosevelt Hotel in New York.
Copyright Business Recorder, 2026
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