Islamabad—The Pakistan government has strategically transitioned the privatization of Pakistan International Airlines (PIA) to a second phase after initial setbacks, prioritizing the sale of power distribution companies (DISCOs) in the first phase. This decision follows the conclusion of a Country Partnership Framework (CPF) with the World Bank, securing nearly $20 billion in assistance. The government and the World Bank are set to organize joint workshops to implement the program’s initiatives effectively.
Minister for Economic Affairs Ahsan Khan Cheema informed a World Bank delegation that the government is concentrating on privatizing power distribution companies initially, with PIA and other state-owned enterprises to follow in the subsequent phase. This marks a renewed effort after the unsuccessful attempt to privatize PIA in the first phase.
The World Bank delegation raised concerns regarding the intricacies involved in privatizing DISCOs, particularly in light of circular debt and structural complexities. Minister Cheema reassured the delegation that the government plans to privatize 50 state-owned enterprises over the next three to four years. He highlighted that the challenges facing Pakistan’s energy sector include high rates for consumers and line performance losses. Cheema emphasized that reducing line losses and incorporating renewable energy sources are pivotal to Pakistan’s energy strategy.
The meeting also addressed Pakistan’s digitalization initiatives. Minister Cheema stated that the country is progressing towards digital transformation, with plans for the complete digitalization of national institutions.
In response to questions about youth employment and women’s rights, the delegation was informed of significant progress in these areas, with successful programs for technical training for youth and initiatives supporting women’s rights.
This visit aimed to understand Pakistan’s economic, political, and social landscape while exploring future development assistance opportunities.
