ISLAMABAD: Pakistan’s federal government has set a target to complete the privatisation of Pakistan International Airlines (PIA) and the Roosevelt Hotel in New York during the forthcoming fiscal year 2025–26, Finance Minister Muhammad Aurangzeb said on Tuesday.
Presenting the federal budget in the National Assembly, Aurangzeb said that the privatisation of loss-making state-owned enterprises (SOEs) remains a top priority of the government.
He said, “Policies and regulatory reforms will be advanced for the privatisation of key assets such as distribution companies (Discos) and generation companies (Gencos). Structural reforms in government are essential to reduce the burden on taxpayers.”
He emphasised the need to shift the role of economic leadership to the private sector.
“In business matters, the leadership of the country should be provided by the private sector, not the government,” the Finance Minister remarked.
The Finance Minister also announced a significant restructuring of federal ministries, stating that the cabinet has approved the right-sizing of 10 ministries.
Furthermore, six divisions have been merged into three, as part of broader efforts to improve governance and reduce public expenditure.
The privatisation of PIA has been under discussion for several years due to the airline’s mounting losses and operational inefficiencies.
Aurangzeb said that the government is committed to carrying forward the process of reforms in SOEs under the framework agreed with the International Monetary Fund (IMF).
These reforms are expected to improve service delivery, reduce fiscal drain, and create space for private sector-led growth.
The total outlay of the federal budget for FY2025–26 stands at PKR 17.573 trillion, down 7% from PKR 18.9 trillion in FY2024–25, reflecting the government’s focus on fiscal consolidation and structural reforms.
