Pakistan’s federal government has launched an ambitious and structured three‑phase privatization plan to divest 24 state-owned enterprises (SOEs) over a five-year span, aiming to inject efficiency and reduce the longstanding fiscal burden borne by public-sector entities.

Phase One (Within 1 Year):
The first wave will target 10 major SOEs. Standouts include Pakistan International Airlines (PIA), the iconic Roosevelt Hotel in New York, First Women Bank Limited, House Building Finance Corporation, and the Agricultural Development Bank. Several key power sector entities are also on the list: Islamabad Electric Supply Company (IESCO), Gujranwala Electric Power Company (GEPCO), and Faisalabad Electric Supply Company (FESCO), among others.

Phase Two (1–3 Years):
This mid-term period focuses on 13 additional enterprises, including insurance giants like State Life Insurance Corporation and Pakistan Reinsurance Company, retail stalwarts such as Utility Stores Corporation, and four power generation companies (GENCOs). It also encompasses six more power distribution companies, including major names like Lahore Electric Supply Company (LESCO), Multan, Peshawar, Hyderabad, Sukkur, and Hazara Electric Supply Company.

Phase Three (3–5 Years):
The final phase will complete the program with the privatization of Postal Life Insurance Company, marking the close of the current SOE divestment strategy.

This tiered approach is designed to optimize preparation and market readiness, enhancing the appeal of SOEs to private investors while avoiding market saturation or budgetary shocks. In many cases such as PIA previous bids failed due to issues like pricing gaps and unresolved liabilities. The revised strategy aims to attract better-quality bids and ensure successful transitions.

The privatization initiative is aligned with Pakistan’s broader economic revival roadmap, structured under its national transformation vision. It supports objectives such as reducing public-sector inefficiencies, attracting foreign and local investment, strengthening private-sector growth, and cementing fiscal stability.

Ultimately, the three-phase privatization program represents a significant shift in public policy: from managing inefficiently run enterprises to empowering private capital to drive productivity and competitiveness paving the path toward a leaner and more resilient economy.