Key Points
- Cabinet expresses satisfaction over completion of 75% PIA privatisation
- Legislative amendments for the Islamabad local government approved
- Relief measures endorsed for power consumers under captive power levy framework
- Prime minister cites economic stabilisation and improved growth indicators
ISLAMABAD: Pakistan’s federal cabinet on Friday endorsed the privatisation of a 75 per cent stake in Pakistan International Airlines (PIA) and approved a range of economic and legislative decisions.
Chairing the meeting, Prime Minister Shehbaz Sharif said the move was part of the government’s broader push to reform loss-making state-owned enterprises and stabilise the economy.
Meeting at the Prime Minister’s House, the cabinet reviewed the bidding process for PIA’s privatisation and expressed satisfaction that it had been conducted transparently. The transaction was described as a key milestone in the government’s economic reform agenda focused on restructuring loss-making state-owned enterprises.
The cabinet also ratified decisions taken by the Cabinet Committee on Legislative Cases on December 30 and December 3, 2025, including amendments to the Islamabad Capital Territory Local Government Ordinance, 2025, clearing the way for changes in the capital’s local governance framework.
In addition, the cabinet confirmed decisions of the Economic Coordination Committee from its August 26, 2025 meeting, approving relief for electricity consumers linked to the off-grid captive power levy and endorsing a strategy to mitigate its impact on distribution company users.
On the recommendation of the Petroleum Division, the cabinet further approved the issuance of a presidential ordinance to amend the Off-Grid (Captive Power Plants) Levy Act, 2025, allowing third-party gas sales to off-grid captive power plants under a revised legal framework.
Addressing the cabinet, the prime minister cited improved economic indicators, including growth in gross domestic product during the first quarter of the current fiscal year, and said the government had pulled the country back from the brink of default towards economic stability. He also briefed ministers on recent engagements with the leadership of the United Arab Emirates and Saudi Arabia, noting satisfaction on both sides over the pace of economic and strategic cooperation and discussions on expanding bilateral ties.
