After National Airlines, Pakistan is selling banks and hotels to avoid complete collapse (Photo- Jagran)
Digital Desk, New Delhi. Pakistan is facing a deep economic crisis, where the foreign debt has reached close to 134 billion dollars. Recently, PIA was handed over to private hands in the ongoing privatization campaign on IMF terms. Now the government is planning to privatize power distribution companies (DISCOs like IESCO, FESCO), banks (First Women Bank, ZTBL), Roosevelt Hotel of New York (through joint venture model), power plants and insurance institutions. It is a 'do or die' situation, but critics are calling it a cover-up of mismanagement and sale of national assets.
PIA is a long-troubled national airline that was facing huge losses for years. Government documents and cabinet discussions indicate that several public sector entities, including power distribution, banking, hospitality, insurance and energy, could be transferred to private hands before the end of 2026.
Pakistan's economic crisis has deepened in recent months, and foreign debt has reportedly exceeded $131 billion. Analysts say the government is now taking loans only to meet daily expenses.
The International Monetary Fund (IMF) has made it clear that large-scale privatization is a pre-condition for any future bailout. Experts say that without significant restructuring and sale of assets, Pakistan may face a debt crisis similar to Sri Lanka.
There will be a deal for 5 major areas
According to officials, a group of five major entities have been selected for privatization over the next 12 months, in what some in Pakistan are informally calling the "Agenda 5" plan.
1. Electricity Distribution Companies (DISCOs)
The problem of frequent interruptions in power supply and power theft has been a serious problem for government power companies. Companies like IESCO (Islamabad), FESCO (Faisalabad) and GEPCO (Gujranwala) are likely to be handed over to private operators.
2. Banking Sector (First Woman Bank and ZTBL)
First Woman Bank Limited (FWBL) and Zarai Taraqiati Bank Limited (ZTBL) have also been proposed for sale. Officials argue that banking operations are more suited to the efficiency of the private sector.
3. Hotels and real estate
The government plans to privatize New York's historic Roosevelt Hotel and Lahore's Services International Hotel, with the hope that the proceeds could help shore up foreign exchange reserves.
4. Energy Generation Companies (Gencos)
To reduce the financial burden on the state, loss-making public power plants including Jamshoro and Lakhda are being considered for disinvestment.
5. Insurance and Retail Network
In an effort by the government to step back from direct commercial activities, the State Life Insurance Corporation and the nationwide utility store network have been included in the list of privatisations.
Debate on future risks
The privatization program running under the mixed political system of Pakistan under the supervision of Army Chief General Asim Munir and Prime Minister Shehbaz Sharif has sparked heated debate. Supporters say this is the only viable path to economic revival.
At the same time, opponents argue that the sale of government assets reflects a failure of governance and threatens to weaken national self-reliance.