Govt to privatise 50 SOEs, including PIA and Discos, in second phase of reforms

Pakistan International Airlines (PIA) and other state-owned enterprises (SOEs) are set for privatisation in the second phase of the government’s economic reforms, Minister for Economic Affairs Ahad Khan Cheema informed a World Bank delegation. 

During discussions with the delegation, comprising five executive directors and four alternate executive directors, the World Bank sought clarity on the privatisation of electricity distribution companies (Discos), raising concerns about structural difficulties and the financial burden of circular debt. 

Cheema outlined the government’s phased strategy, stating that about one-third of SOEs were strategic assets, while the remaining entities were targeted for privatisation. The plan includes the divestment of up to 50 SOEs over the next three to four years.

Addressing the power sector challenges, Cheema noted that high electricity tariffs and technical inefficiencies were pushing consumers toward renewable energy. He acknowledged that circular debt was gradually declining but remained a key issue. The minister also highlighted ongoing efforts to reduce line losses and achieve full cost recovery in the energy sector. He emphasised that renewable energy and transmission efficiency were central to the government’s energy policy.

The minister welcomed the World Bank’s continued engagement, noting that this was the third delegation visit in a short period, which he said reflected confidence in the government’s economic reform efforts. 

The World Bank representatives stated that their visit aimed to assess Pakistan’s economic, political, and governance landscape while exploring future development support under the newly launched Country Partnership Framework (CPF) 2026-2035.

Cheema also highlighted Pakistan’s progress in digitalisation, stating that a comprehensive review of digital models had been completed, and the country was now moving towards full-scale digital transformation of its institutions. 

Responding to questions on employment and gender inclusion, he assured the delegation that the government had prioritised technical training programs for youth and women, with sufficient budgetary allocations to support their expansion.