Pakistan Adds Three Major Airports to Five-Year Privatization Plan

The federal government has placed the country’s three largest international airports in its new five-year privatization programme. The Pakistan airport privatization plan includes Jinnah International Airport, Islamabad International Airport and Allama Iqbal International Airport. The government will privatize these airports during the first year of the programme. Officials say the move forms part of broader economic reforms aimed at improving the performance of state-owned entities.

First Phase Targets 11 State-Owned Entities

The government has identified 25 state-owned organizations for privatization over the next five years. It divided the programme into three phases. The first phase will run for one year and includes 11 entities. The second phase will continue for one to three years and covers 13 organisations. Meanwhile, the final phase will take place between three and five years and includes one remaining entity.
Along with the three major airports, the first phase includes the Roosevelt Hotel, Zarai Taraqiati Bank Limited, House Building Finance Corporation, Pakistan Engineering Company and Sindh Engineering Limited. In addition, the government plans to privatise three electricity distribution companies. These include Islamabad Electric Supply Company, Faisalabad Electric Supply Company and Gujranwala Electric Power Company.
The government has also removed First Women Bank Limited and Pakistan International Airlines from the privatization list after completing their privatization processes.

Second and Final Phases Expand the Programme

The second phase covers Utility Stores Corporation and several electricity distribution companies. These include Lahore Electric Supply Company, Multan Electric Power Company, Hyderabad Electric Supply Company, Sukkur Electric Power Company, Peshawar Electric Supply Company and Hazara Electric Supply Company.
Furthermore, the government plans to privatise Jamshoro Power Company Limited, Central Power Generation Company Limited, Northern Power Generation Company Limited and Lakhra Power Generation Company Limited. State Life Insurance Corporation of Pakistan and Pakistan Reinsurance Company Limited also appear on the list.
Finally, the government aims to complete the privatisation of State Life Insurance Company and Postal Life Insurance Company Limited during the last phase of the five-year programme. Officials believe the roadmap will improve efficiency, attract investment and reduce the financial burden on the public sector.