Pakistan’s federal government has announced plans to privatise 24 state-owned enterprises, including Pakistan International Airlines (PIA), as part of a broad economic reform agenda. Finance Minister Muhammad Aurangzeb confirmed that PIA will be fully privatised before the end of 2025, marking a major step toward restructuring the country’s public sector.
Speaking at an event in Karachi, the finance minister highlighted that the government aims to enhance private sector participation and drive sustainable, production-based growth. He emphasised that macroeconomic stability has been achieved and is now being recognised internationally.
PIA and Other Enterprises to Undergo Privatisation
According to the finance minister, the privatisation of state-owned enterprises (SOEs) is a critical part of Pakistan’s long-term strategy to improve efficiency and reduce financial burdens on the national budget. The inclusion of PIA in this list is seen as a pivotal move to revive the struggling national carrier and attract new investors.
Aurangzeb underscored that the reform process aligns with the government’s broader economic vision to strengthen competitiveness and ensure fiscal discipline. “Production-based growth is the only sustainable path forward,” he stated.
Positive Economic Indicators and Global Recognition
Aurangzeb noted that international financial institutions and rating agencies have acknowledged Pakistan’s economic progress. Improvements in fiscal management, export performance, and investment climate have contributed to renewed investor confidence.
He added that corporate profits have grown by 9%, reflecting the improving business environment. The government’s focus, he said, is on creating a robust ecosystem that supports both domestic and international investors.
Encouraging Private Sector and Digital Transformation
The finance minister highlighted that the government intends to strengthen collaboration with global companies to accelerate economic growth. As part of this vision, Google is planning to establish an export hub in Pakistan, with an emphasis on the information technology and maritime sectors.
He explained that such initiatives will help boost exports and enhance the country’s technological capacity. “We aim to make Pakistan a centre for exports. Structural reforms and digitalisation will ensure transparency and efficiency in the economy,” he said.
Expanding the Tax Net and Boosting Transparency
Aurangzeb also stressed the importance of expanding the tax base to increase national revenue. The government has added 900,000 new tax filers as part of ongoing fiscal reforms. He further revealed that Egypt has expressed interest in learning from Pakistan’s Federal Board of Revenue (FBR) digital transformation initiatives.
The minister reaffirmed that digitisation would not only improve tax collection but also enhance accountability and transparency in governance.
Building an AI-Driven and Maritime Economy
In his address, Aurangzeb pointed out that Pakistan is actively developing an ecosystem that supports AI-driven growth. The government plans to integrate emerging technologies across industries to improve productivity and innovation.
He also identified major opportunities within Pakistan’s blue economy, particularly in maritime trade and coastal resource development. These sectors, he noted, hold immense potential for creating sustainable economic value.
A New Era of Economic Reform
The decision to privatise 24 state-owned enterprises signals a significant shift in Pakistan’s economic management strategy. By empowering the private sector, promoting digital transformation, and implementing structural reforms, the government aims to build a self-sustaining and competitive economy.
With PIA’s privatisation expected by the end of the year, Pakistan’s reform roadmap reflects its determination to balance growth with fiscal discipline and innovation.
