Pakistan will privatise over 50 state entities in 4 years, World Bank told

Pakistan’s Economic Affairs Minister Ahad Cheema announced plans to privatize over 50 state-owned enterprises (SOEs) over the next four years as part of efforts to restructure public entities and improve their performance, the government said on Monday.

Cheema made this statement during a meeting with a World Bank Group (WBG) delegation, according to the Press Information Department (PID). The visit was aimed at enhancing the understanding of Pakistan’s economic, political, social, and governance landscape, while exploring future development opportunities.

This announcement follows Prime Minister Shehbaz Sharif's pledge earlier to privatize all state-run entities, except those deemed “strategically important” or essential. The International Monetary Fund (IMF), as part of Pakistan’s $3 billion bailout in 2023, had emphasized the need for stronger governance of SOEs, as their losses were severely affecting the country’s finances.

Last year, Pakistan’s Cabinet Committee on Privatization (CCOP), responsible for the Privatization Program 2024-29, approved the sale of 24 entities. However, the inclusion of additional state entities will be decided after a review to determine their classification as strategic or essential.

Cheema explained that the first phase of privatization will focus on power distribution companies (DISCOS), while the second phase will include the privatization of Pakistan International Airlines (PIA) and other SOEs. He added that the government intends to privatize up to 50 SOEs in the next 3-4 years.

The minister also discussed the challenges facing the power sector, such as high tariffs for consumers, inefficiencies from line losses, and efforts to recover full costs.

The World Bank delegation praised Pakistan’s efforts to tackle key challenges and expressed support for the country’s newly launched Country Partnership Framework (CPF) for 2026-2035, which includes an unprecedented $40 billion commitment. This support includes $20 billion in sovereign lending from the International Development Association (IDA) and the International Bank for Reconstruction & Development (IBRD), along with another $20 billion from the International Finance Corporation (IFC) to encourage private sector investment in Pakistan.