Adviser to the Prime Minister on Privatization, Muhammad Ali, informed the National Assembly’s Standing Committee on Privatization that state-owned enterprises (SOEs) have collectively incurred a staggering cost of Rs5.5 trillion (over $19.5 billion) to the national exchequer over the past decade. Of this, Pakistan International Airlines (PIA) alone is responsible for Rs700 billion of the losses.
During a meeting of the NA Committee on Privatization, which was chaired by Farooq Sattar, Muhammad Ali emphasised the unsustainable nature of these losses, noting that the burden falls on the taxpayer. “This is not just unsustainable—it’s a burden on every taxpayer,” he said.
The committee was also informed that around 1,000 utility stores would be shut down by the end of the month, potentially leading to hundreds of job losses. This news came as part of the plan to reduce the number of operational utility stores from 5,500 to 1,500, with privatisation plans for those that remain financially viable.
Sattar urged the government to ensure job security for affected workers. “The state is responsible for ensuring job security,” he stated, highlighting that 2,237 USC employees had already been laid off.
The Utility Stores Corporation (USC), despite receiving a subsidy of Rs38 billion in the last fiscal year, has not yet been allocated the Rs60 billion for the current year, exacerbating the financial troubles.
The committee also discussed the privatisation of three loss-making power distribution companies—Sepco, Hesco, and Pesco. The Power Division informed the committee that discussions were underway with the World Bank regarding the privatization of these companies, with financial advisors expected to be appointed after the companies’ accounts are updated by September 2025.
