Pakistan Plans Privatisation of 17 State-Owned Enterprises

Pakistan's Privatisation Commission is advancing plans to privatise 17 state-owned enterprises (SOEs), including nine power distribution companies, while also preparing to outsource three major airports and pursue transactions involving banks and insurance firms.

Muhammad Ali, Adviser to the Prime Minister on Privatisation and chairman of the Privatisation Commission, shared these plans while speaking at the CEO Summit in Islamabad on Thursday. He outlined the government's economic reform agenda and highlighted the potential role of private-sector investment in driving growth.

Ali said privatisation and public-private partnerships could attract capital, bring specialised expertise and improve operational efficiency across businesses and infrastructure. Such arrangements could also enable the government to direct more public funds towards essential services.

He identified energy-sector reforms, improved documentation of economic activity and the restructuring of state-owned enterprises as key areas for strengthening Pakistan's investment climate.

According to the adviser, businesses need access to affordable and dependable energy, a wider tax base and the consistent implementation of economic reforms to create better operating conditions and encourage investment.

Reflecting on Pakistan's economic and fiscal difficulties during 2022 and 2023, Ali said the country had navigated a period of serious challenges. However, he stressed that maintaining economic growth would depend on a clear policy direction and the sustained execution of reforms.

He also introduced a five-point economic strategy called TRUST, which focuses on targeting competitive industries, sustaining reforms, unlocking private capital, scaling up exports and developing talent through education and skills training.

Under this approach, Pakistan should prioritise industries where it already has competitive advantages, particularly sectors with strong global demand, significant employment potential and the ability to generate foreign exchange.

Ali highlighted agriculture and agri-processing, textiles and apparel, and information technology and digital services as industries with considerable potential for further growth.

Drawing lessons from the economic development of China, South Korea, Vietnam and Bangladesh, he said countries could achieve sustained progress by building on established industrial strengths while maintaining consistent economic policies.

The adviser also emphasised the need to broaden Pakistan's export base. He noted that workers' remittances totalled approximately $41.6 billion in the previous fiscal year, compared with goods exports of around $30 billion.

While remittances continue to provide an important source of foreign exchange, Ali argued that sustainable long-term growth requires stronger domestic production and greater exports of higher-value goods and services.

He called for increased foreign investment and better support for start-ups, alongside improvements in technical and vocational education to equip workers with skills that meet industry needs.

Ali further highlighted the importance of increasing women's participation in the workforce, saying broader inclusion could help raise productivity and strengthen the country's economic competitiveness.

He concluded that all five elements of the TRUST framework must advance together, combining structural reforms, private investment, export expansion and workforce development to help Pakistan maintain economic growth amid changing global conditions.