Islamabad: Prime Minister Shahbaz Sharif has declared the privatization of loss-making state-owned enterprises (SOEs) as one of the top priorities of his government, announcing that after Pakistan International Airlines (PIA), electricity distribution companies will now be taken up for privatization in a phased manner.
The remarks were made during a high-level meeting on the affairs of the Privatization Commission, chaired by Prime Minister Shahbaz Sharif. The meeting was attended by federal ministers, the prime minister’s adviser on privatization, the chairperson of the Privatization Commission, and other senior officials from relevant departments.
Addressing the meeting, Prime Minister Shahbaz Sharif said that the privatization of the national airline should be seen as “the first drop of rain,” indicating that many more reforms and privatization initiatives are planned in the coming period. He stressed that state-owned enterprises that are continuously incurring losses have become a heavy burden on the national exchequer and that their privatization is essential to stabilize the economy and improve service delivery.
The prime minister emphasized that the government is fully committed to pushing forward the privatization agenda in a transparent, professional, and market-oriented manner. He directed the Privatization Commission to accelerate work on institutional reforms so that it can effectively handle complex privatization transactions in line with international best practices.
Shehbaz Sharif further instructed that the Privatization Commission should be strengthened by inducting highly skilled professionals from the private sector and the market. He underlined that all appointments must be made strictly on merit and through a transparent process. According to the prime minister, bringing in experienced professionals will help improve decision-making, investor confidence, and the overall credibility of the privatization process.
The prime minister also highlighted the need to further enhance the commission’s public relations and marketing capacity. He said that effective communication with investors, stakeholders, and the public is crucial to ensure clarity, counter misinformation, and attract credible local and international investors.
In addition, Prime Minister Shehbaz Sharif directed that the Privatization Commission be fully digitized. He said digitization would improve efficiency, record-keeping, transparency, and accountability in all privatization-related processes. He also ordered that all privatization projects be subjected to third-party audits conducted by internationally recognized firms to ensure compliance with global standards and to strengthen investor trust.
During the meeting, officials briefed the prime minister on the ongoing reform process within the Privatization Commission. The briefing highlighted that the reforms are based on four key pillars: strategic discipline, strong governance, enhancement of institutional capacity, and transparent engagement with stakeholders. Officials explained that these reforms are aimed at transforming the commission into a modern, professional institution capable of managing large-scale privatization initiatives.
The meeting was also informed about the government’s plan to privatize electricity distribution companies (DISCOs) in two phases. According to the briefing, the privatization of power distribution companies is considered a critical step toward reducing losses in the power sector, improving efficiency, and ensuring better service for consumers.
In the first phase, three power distribution companies will be privatized: Islamabad Electric Supply Company (IESCO), Gujranwala Electric Power Company (GEPCO), and Faisalabad Electric Power Company (FESCO). These companies were selected for the initial phase due to their relatively better performance, stronger consumer base, and higher potential to attract private investors.
In the second phase, the government plans to privatize Hyderabad Electric Supply Company (HESCO) and Sukkur Electric Power Company (SEPCO). Officials acknowledged that these companies face more significant challenges, including higher losses and governance issues, but expressed confidence that structural reforms and proper transaction design would make their privatization feasible.
Prime Minister Shehbaz Sharif said that reforms in the power sector are unavoidable, as inefficiencies, theft, and poor recovery have severely damaged the sector’s financial sustainability. He noted that privatization, combined with regulatory oversight, can help bring in investment, modern management practices, and technological improvements.
The prime minister reiterated that the government’s objective is not merely to sell assets, but to ensure long-term improvements in performance, service quality, and financial health. He said that successful privatization would reduce the fiscal burden on the government, free up public resources for social development, and help stabilize electricity tariffs over time.
In recent years, Pakistan’s power sector has faced mounting challenges, including circular debt, transmission and distribution losses, and aging infrastructure. Experts believe that privatizing distribution companies, if done transparently and carefully, could play a major role in addressing these issues.
Concluding the meeting, Prime Minister Shehbaz Sharif reaffirmed the government’s resolve to push ahead with difficult but necessary economic reforms. He said that while privatization decisions may be challenging, they are essential for Pakistan’s economic recovery and long-term growth.
The prime minister directed relevant ministries and the Privatization Commission to ensure close coordination and timely execution of decisions, adding that progress on privatization initiatives would be reviewed regularly at the highest level.
