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Govt Unveils 5-Year Privatization Plan for 24 Institutions
The federal government announces a 5-year privatization plan from 2024-2029, aiming to privatize 24 public institutions, including PIA and Roosevelt Hotel in New York.
ND
by News Desk
2024-10-14
Govt Unveils 5-Year Privatization Plan for 24 Institutions

The federal government has revealed a comprehensive 5-year privatization plan spanning from 2024 to 2029, targeting the privatization of 24 state-owned institutions. This move comes after the approval of the Federal Cabinet, as the government seeks to boost economic efficiency and reduce the burden of loss-making public enterprises.

 

The plan, outlined by the Ministry of Privatization, is divided into three phases. In the first phase, which will be completed within a year, 10 institutions will be privatized. The second phase, scheduled to take between one to three years, will see the privatization of 13 additional institutions. Finally, one institution will be privatized over a span of three to five years in the third phase.

 

First Phase (2024-2025):

Some of the most notable entities slated for privatization in the first phase include Pakistan International Airlines (PIA) and the Roosevelt Hotel in New York. The privatization of PIA has long been discussed due to its financial troubles, while the Roosevelt Hotel, owned by the Pakistani government, is seen as a prime asset.

 

Other institutions in the first phase include:

 

Agricultural Development Bank

First Women Bank

House Building Finance Corporation

Pakistan Engineering Company

Sindh Engineering Company Limited

Additionally, three major power distribution companies in Islamabad, Faisalabad, and Gujranwala are also set for privatization during this initial phase.

 

Second Phase (2025-2027):

The second phase will focus on privatizing several power generation and distribution companies across Pakistan, including:

 

Northern Power Generation

Lakhdar Power Generation Company

Lahore Electric Supply Company (LESCO)

Multan Electric Power Company (MAPCO)

Hyderabad Electric Supply Company (HESCO)

Sukkur Electric Power Company (SEPCO)

Peshawar and Hazara Electric Supply Companies

Jamshoro Power Company

Central Power Generation Company

In addition to these, other major institutions, including Utility Stores Corporation, State Life Insurance, and Pakistan Reinsurance Company, are also earmarked for privatization in this phase.

 

Third Phase (2027-2029):

The final phase will focus on the privatization of the Postal Life Insurance Company, which will conclude the government’s privatization strategy.

 

Strategic Goals and Impact:

The government has described the privatization plan as part of its broader economic reforms aimed at improving the efficiency of public enterprises, attracting investment, and reducing fiscal losses. The privatization of loss-making entities such as PIA and power companies is seen as a necessary step to free the government from the financial burden of subsidizing inefficient institutions.

 

However, the privatization strategy is expected to face resistance from various sectors, including labor unions, which have previously opposed the sale of public assets. There are also concerns regarding the transparency of the process and the potential for job losses as private ownership takes control of these entities.

 

The Ministry of Privatization has assured that the process will be conducted transparently and with careful consideration of the socioeconomic impact. “This plan will not only ease the financial strain on the government but will also open doors for private sector investment, enhancing the quality of services provided by these institutions,” the ministry said in a statement.

 

As the government embarks on this ambitious privatization program, it aims to strike a balance between fiscal responsibility and maintaining key services for the public.

 
Tagged:

PakistanEconomy

EconomicReforms

StateOwnedEnterprises

PrivatizationPlan

PIAPrivatization
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