Privatization Adviser Says Pakistan Eyes $723 Million From State Asset Sales
Government plans at least six deals, including power companies and Islamabad airport operations, by June 2027
Pakistan – (Staff Reporter/Web Desk) – Pakistan hopes to raise up to $723 million from selling state-owned businesses and airport operations by June 2027, the privatization adviser has said. Muhammad Ali shared the plan in an interview with Arab News on Friday.
The plan is part of reforms under the country’s $7 billion IMF program. It aims to cut the losses of state firms and bring in private money.
The government wants to complete at least six deals this year. These include three power distribution companies, two financial institutions and a long-term deal for Islamabad International Airport.
The power companies serve Faisalabad, Gujranwala and Islamabad. The two financial institutions are Zarai Taraqiati Bank and House Building Finance Corporation.
“Hopefully, we are looking at around Rs150-200 billion this fiscal year,” Ali said. That equals about $542 million to $723 million.
Investors from Türkiye and Saudi Arabia have shown interest in the power companies. Turkish groups such as Calik, Cengiz and EkoTürk Enerji are among them. A Saudi firm is also in the race for the Islamabad power company.
In total, the government is working on 17 deals. These include nine power companies, three airports, two insurance firms and two financial institutions.
The next power companies to be offered will serve Hyderabad and Sukkur. Ali expects more interest from the Middle East.
The government hopes to invite bids for Islamabad airport by the end of December. The Asian Development Bank is advising on the deal. For Karachi and Lahore airports, Ernst & Young will act as the financial adviser. Those two airports may need over $500 million in new investment.
The plan could later reach Pakistan State Oil and the two gas distributors. Ali said the gas firms carry circular debt of more than Rs3 trillion, or about $11 billion. “These problems will not be resolved unless we privatize these companies,” he said.
Ali also spoke about costly electricity. He said a tariff below 9 cents per unit would be a good start, with 7 to 8 cents being ideal.
The government is also reviewing options for the Roosevelt Hotel in New York, which PIA owns. Ali expects clarity in the next few months.
On the IMF, he said the lender seems happy with the progress so far.
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