Govt’s five year privatization plan set to run in three phases

ISLAMABAD: Pakistan’s government has unveiled its five-year privatization plan, set to run from 2024 to 2029, which includes the privatization of 24 institutions in three phases.

The Ministry of Privatisation prepared the list after getting the green light from the federal cabinet.

The first phase, scheduled to take place within the next year, will see the privatization of 10 institutions, including Pakistan International Airlines (PIA), Roosevelt Hotel in New York, Agricultural Development Bank, First Women Bank, House Building Finance Corporation, Pakistan Engineering Company, Sindh Engineering Limited, and power distribution companies in Islamabad, Faisalabad, and Gujranwala.

The second phase, spanning three years, will involve the privatization of 13 institutions, including Utility Stores Corporation, power distribution companies such as Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), Hyderabad Electric Supply Company (HESCO), Sukkur Electric Power Company (SEPCO), Peshawar Electric Supply Company, and Hazara Electric Supply Company.

Additionally, power generation companies like Jamshoro Power Company, Central Power Generation Company, Northern Power Generation, and Lakhra Power Generation Company, as well as State Life Insurance and Pakistan Reinsurance Company, will be privatized during this period.

The third and final phase will focus on privatizing one institution, although details on this have not been disclosed.

Finance Minister Muhammad Aurangzeb has reaffirmed the government’s commitment to privatizing PIA and three power distribution companies before the end of 2024.

This move aims to reduce the fiscal burden on the public exchequer, improve service delivery, and facilitate competition in the economy.