Pakistan moves closer to privatising Zarai Taraqiati Bank, bids opened for financial adviser

Pakistan took a significant step towards privatising Zarai Taraqiati Bank Ltd. (ZTBL) as the Privatisation Commission opened technical bids to hire a financial adviser, a pivotal move in the government’s efforts to reduce its reliance on state-owned enterprises (SOEs).

A committee is now reviewing the technical bids submitted by several financial consulting firms that are competing to manage the bank’s restructuring and eventual sale. 

This process aligns with the government’s broader initiative—supported by the International Monetary Fund (IMF)—to streamline the public sector, improve operational efficiency, and encourage private investment.

ZTBL, which specialises in agricultural lending, has faced long-standing challenges, including poor governance, a high volume of non-performing loans, and outdated service structures. 

The bank’s reform and potential privatization are seen as crucial for enhancing rural credit access and encouraging private-sector involvement in agricultural financing.

Sources familiar with the process indicated that the next step will involve inviting financial bids from firms that successfully qualify in the technical evaluation phase. 

The chosen financial adviser will be instrumental in determining the bank’s asset value, identifying potential buyers, and structuring the transaction for sale.