Pakistan Advances Plan to Privatize 17 State-Owned Enterprises

ISLAMABAD — Pakistan’s government is advancing plans to privatize 17 state-owned enterprises, the chairman of the Privatization Commission announced on Thursday, stressing that the move could bring investment, expertise, and efficiency to the country’s businesses and infrastructure.

Prime Minister Shehbaz Sharif’s administration is seeking to privatize loss-making state-owned enterprises, particularly following the multi-billion-dollar sale of former flag carrier Pakistan International Airlines in December 2025. Islamabad aims to transfer these assets to private companies to ensure better management, optimal resource allocation, and an end to annual financial losses running into billions of dollars. State-owned enterprises reported losses of Rs905 billion ($3.24 billion) in 2023, Rs851 billion ($3.04 billion) in 2024, and Rs832 billion ($2.98 billion) in 2025, according to Pakistan’s finance minister.

Pakistan’s broader privatization program, in line with International Monetary Fund (IMF) recommendations, includes power distribution companies, banks, airports, insurance companies, and other assets. The government has already issued expressions of interest to privatize three state-owned electricity distribution companies, offering 51 percent to 100 percent equity stakes alongside management control.

Speaking at a conference attended by business leaders in Islamabad, Privatization Commission Chairman Muhammad Ali highlighted energy reforms, economic documentation, and state-owned enterprise restructuring among the government’s key priorities.

“The Privatization Commission is working on the privatization of 17 state-owned enterprises, including nine power distribution companies, as well as the outsourcing of three major airports and transactions involving banks and insurance companies,” the commission said in a statement.

Ali said privatization and public-private partnerships could bring investment, expertise, and efficiency into businesses and infrastructure, allowing public resources to be directed toward essential services.

The official called for increasing Pakistan’s exports, noting that the country received approximately $41.6 billion in workers’ remittances in the previous fiscal year compared with $30 billion in goods exports.

He acknowledged the importance of remittances, saying that long-term growth requires stronger production and higher-value exports.

“He also called for greater foreign investment, support for start-ups, and industry-focused technical and vocational training,” the Privatization Commission said. “Expanding women’s participation in the workforce, he added, is important for improving productivity and economic competitiveness.”

Pakistan’s privatization push comes amid efforts to ensure sustainable economic progress after a prolonged macroeconomic crisis that drained foreign exchange reserves and triggered a balance-of-payments crisis in 2023.

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