Privatization Program Falls Behind As Govt | Quik

The federal government’s privatization program has fallen significantly behind its initial schedule, with only two state owned entities privatized after two years of a five year plan that originally set a first year target of 10 transactions.

The government approved the Privatization Program 2024 to 2029 in August 2024, with the original plan covering 24 commercial state owned entities across three phases. Phase I was designed to be completed within one year, Phase II within one to three years and Phase III within three to five years.

However, only First Women Bank Limited and Pakistan International Airlines have reached privatization completion so far. First Women Bank achieved financial close in April 2026 after the government transferred its entire 82.64 percent stake to UAE based EVE Holding, while PIA’s first financial closing and transfer of management control were completed in June 2026.

The slow progress comes despite privatization being positioned as a key part of the government’s economic reform agenda, aimed at reducing the state’s role in commercial activities, limiting the financial burden of loss making entities and encouraging greater private sector participation.

The Cabinet Committee on Privatization had also directed that the government’s commercial footprint should be reduced, with priority given to loss making entities while even profitable state owned companies could be considered for sale.

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