The federal government has incorporated Pakistan’s three largest international airports into its updated five-year privatisation programme, alongside seven power distribution companies. This move is part of a comprehensive strategy to divest or restructure 25 state-owned enterprises (SOEs) in three distinct phases.
Notably, Jinnah International Airport in Karachi, Islamabad International Airport, and Allama Iqbal International Airport in Lahore have been newly added to the list of assets targeted for private sector involvement. These airports were not included in the government’s initial privatisation agenda.
The revised roadmap, developed under the federal government’s five-year privatisation framework, outlines the divestment or restructuring of 25 SOEs. The plan is organized into three phases: the first phase will address 11 entities within the next year, the second phase will cover 13 entities over one to three years, and the third phase will focus on one entity within a three to five-year timeframe.
Excluded from the current plan are Pakistan International Airlines (PIA) and First Women Bank Limited (FWBL), as the government considers their privatisation processes successfully completed.
Along with the three international airports, the first phase includes the privatisation of several key entities: 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.
During the second phase, the government intends to privatise 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 Jamshoro Power Company, Central Power Generation Company Limited (CPGCL), Northern Power Generation Company Limited (NPGCL), Lakhra Power Generation Company Limited (LPGCL), State Life Insurance Corporation of Pakistan, and Pakistan Reinsurance Company Limited (PRCL).
The third and final phase is set to involve the privatisation of the Postal Life Insurance Company.
This updated privatisation strategy reflects the government’s broader effort to alleviate the financial strain caused by loss-making public enterprises, enhance operational efficiency, and attract private sector investment. It aligns with Pakistan’s structural reform commitments aimed at improving fiscal sustainability and bolstering the private sector’s role within the national economy.
