Federal govt announces privatisation of 24 state-owned entities

ISLAMABAD: The federal government on Thursday announced plans to privatize 24 government-owned entities in three phases over a period of 5 years.

Federal Minister for Privatization Abdul Aleem Khan presented the list of 24 government institutions prepared last year for privatization in the National Assembly.

In the first phase, the privatization of major entities such as PIA (Pakistan International Airlines), the Roosevelt Hotel, and the Agricultural Development Bank will be completed within a year.

Additionally, three distribution companies, including IESCO, will also be privatized in the first phase.

As per the document, entities like State Life Insurance, Utility Stores Corporation, and four additional distribution companies (DISCOs) will undergo privatization in the second phase.

The minister further revealed that six more DISCOs, including LESCO (Lahore Electric Supply Company), will be privatized in the second phase. The final phase will see the privatization of the Postal Life Insurance Company.

The cabinet committee directed the Privatisation Ministry to deliberate on the phasing of each entity in consultation with the respective ministries.

The committee recommended that priority shall be accorded to privatisation of loss-making entities, while the federal footprint shall be limited only to the Strategic and Essential SOEs under the federal government’s domain.