ISLAMABAD: Pakistan’s five-year privatization program appears to be facing significant delays, with the federal government struggling to meet the targets set for the first phase of its ambitious economic reform plan.
Two years after the launch of the five-year privatization program, the government has been unable to achieve even the targets originally set for its first year. Out of 10 institutions selected for privatization during the first phase, only two have been successfully privatized so far.
The two institutions are First Women Bank and Pakistan International Airlines (PIA). The slow progress has raised concerns about the government’s ability to implement its broader economic reform agenda and complete the remaining privatization targets within the planned timeframe.
The federal government approved the five-year privatization program for 2024-2029 in August 2024. Under the initial plan, 24 state-owned institutions were selected for privatization and divided into three phases.
The first phase was designed to focus on 10 institutions, with the government expected to complete their privatization within the first year. However, the limited progress over the following two years indicates that the process has moved considerably slower than originally anticipated.
The privatization drive is considered an important part of the government’s broader economic reform strategy, particularly as Pakistan continues to face pressure to improve the performance of state-owned enterprises and reduce the financial burden associated with loss-making public institutions.
