IMF Pushes Pakistan to Fast-Track Sale of Govt-Owned Entities Like PIA, DISCOs in FY26

Budget consultations between Pakistan and the International Monetary Fund (IMF) for the fiscal year 2025-26 have entered the final phase. The IMF is placing strong emphasis on accelerating the privatization of state-owned enterprises, official sources told ProPakistani. In a detailed briefing to the IMF, Pakistani authorities confirmed that the right-sizing of government-owned enterprises is targeted for completion by December 2025. The privatization of Pakistan International Airlines (PIA) is expected to be finalized within this year, sources disclosed. A financial advisor has been appointed for the privatization of the Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO), and Gujranwala Electric Power Company (GEPCO), with a target to complete the process by December 2025. In the second phase, Hyderabad, Sukkur, and Peshawar power companies will be privatized. The Privatization Commission also disclosed that the Nandipur Power Plant is scheduled for privatization in January 2026. Work is progressing on the transaction structure for the Roosevelt Hotel in New York. Meanwhile, progress has also been made in the privatization of the First Women Bank Limited and the House Building Finance Corporation (HBFC). Sources added that the privatization of profitable commercial entities remains a top priority.