ISLAMABAD — The federal government has kicked off an ambitious five-year roadmap to privatise two dozen state-owned enterprises (SOEs), including Pakistan International Airlines (PIA) and several power distribution companies. The plan, approved by the federal cabinet and announced in Parliament on Thursday, will unfold in three phases stretching from 2024 to 2029.
Privatisation Minister Abdul Aleem Khan outlined the strategy in a written response during the National Assembly’s Question Hour. The roadmap confirms that 24 SOEs will be sold off in staggered phases, with 10 high-profile entities leading the first wave.
Phase One Targets: Aviation, Banking, Engineering, and Power
In the initial phase, the government will offload stakes in 10 major entities, among them the loss-making PIA and its associated Roosevelt Hotel in New York. Other names on the list include:
- Zarai Taraqiati Bank Ltd (ZTBL)
- First Women Bank Ltd (FWBL)
- Pakistan Engineering Company (Peco)
- Sindh Engineering Limited
- Three electricity distributors: IESCO, FESCO, and GEPCO
This phase signals the government’s intent to exit sectors long plagued by inefficiency, mismanagement, and mounting losses.
Second Phase: Bulk of Power Sector, State Life, and Utility Stores Up Next
The second phase, scheduled over the next three years, will bring a more aggressive push into the energy sector. It includes the privatisation of four state-run power generation companies (Gencos) and six more distribution companies, such as:
- LESCO
- MEPCO
- HAZCO
- HESCO
- PESCO
- SEPCO
State Life Insurance Corporation and Utility Stores Corporation will also be part of this wave — marking a significant shift away from public sector retail and insurance operations.
Final Phase: Postal Life Insurance to Be Sold by 2029
The third and final phase will cover the sale of Postal Life Insurance Company — a relatively smaller, but still symbolic, exit from the state’s legacy portfolio of insurance services.
The Cabinet Committee on Privatisation (CCoP) approved the list on August 2, 2024. The full plan received the federal cabinet’s nod on August 13.
US Eyes Pakistan’s Mineral Wealth — But Tariffs Complicate the Picture
In a separate disclosure, Commerce Minister Jam Kamal Khan revealed American interest in Pakistan’s mineral sector, particularly copper. However, he noted that while the US has slapped 50% tariffs on several metals including iron, steel, and aluminum, refined copper has been excluded — making it strategically beneficial for Pakistan to focus on value-added copper exports to the US.
State Life Halts Health Insurance in AJK, GB Due to Funding Cut
In another blow to public service delivery, State Life Insurance Corporation has ceased providing health insurance coverage in Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan. The move comes after the federal government halted funding for the two regions — raising concerns about widening healthcare disparities.
Government Vows Lower Energy Tariffs, Touts Drop in Inflation
Minister of State for Finance Bilal Azhar Kayani told lawmakers that the government plans to further reduce energy tariffs, aiming to ease costs for exporters. On inflation, Kayani claimed progress: inflation in July FY2026 was reported at 4.1%, a sharp drop from 11.1% during the same month last year.
Parliamentary Showdown: Speaker Slams Bureaucratic Stonewalling
Tensions flared in the National Assembly as Speaker Ayaz Sadiq lashed out at top government ministries for repeatedly failing to respond to lawmakers’ questions. The immediate trigger: yet another instance of “Reply Not Received” to a parliamentary query — this time from MNAs Syed Rafiullah and Ali Muhammad Khan.
Sadiq didn’t hold back, summoning the Secretary Finance on the spot and warning that even the State Bank governor could be called in next. “Parliament is being treated with utter disregard — this is unacceptable,” he declared.
He also ordered a joint secretary to leave the officers’ lobby in protest and directed the Finance Committee chairman to ensure full cooperation from relevant ministries. The Ministry of Planning wasn’t spared either, after requesting yet another week to respond to a long-pending question.
“Does it take an entire year to answer one question?” the speaker asked sharply. Law Minister Azam Nazeer Tarar offered an unconditional apology on behalf of absent bureaucrats — but it did little to cool the Speaker’s fury.