Pakistan to finalize privatization of power distributors in 2026: finance minister

Pakistan will complete the privatization of its electricity distribution companies this year as part of a broader reform drive aimed at improving transparency and reducing losses in state-owned enterprises, Finance Minister Mohammed Aurangzeb said Monday.

“This year, the privatization process of electricity distribution companies will be completed,” Aurangzeb said in an address focused on the performance of state-owned enterprises.

He said the government wants to “further enhance transparency in the performance of all state-owned institutions” and that the results of state-owned enterprises will be presented before Parliament annually.

“We are ensuring transparency in every sector,” Aurangzeb said, adding that reforms in state-owned enterprises are the government’s top priority.

Aurangzeb said the government has strictly implemented a right-sizing policy and is working on reforms across all sectors. Over the past three years, he said, the fiscal deficit has declined and losses at state-owned enterprises have narrowed.

“In the past three years, losses of state-owned enterprises have decreased by PKR 74 billion,” he said.

According to the minister, losses stood at PKR 905 billion in 2023, declined to PKR 851 billion in 2024 and further fell to PKR 832 billion in 2025.

He said the government wants to shut down institutions that have been running at continuous losses and that improving the performance of state-owned enterprises is “the prime minister’s mission”.

Aurangzeb said the privatization of 26 institutions is a top priority in the initial phase and that the process will expand beyond those entities. He added that the government has accelerated privatization efforts, including work on the House Building Finance Corporation.

The minister said five electricity distribution companies are currently being prepared for privatization. Advisors Alvarez & Marsal have been appointed for three of the companies, while the Turkish Investment Bank has been named advisor for two others.

Aurangzeb said the media has not presented an accurate picture of the performance of state-owned enterprises. He noted that while state-owned enterprises remain a burden of PKR 2,078 billion on the public, they are also generating profits of PKR 2,119 billion.

“Over the past year, compared to losses, state-owned enterprises have posted a positive profit of PKR 40 billion,” he said.

He added that declining international oil and gas prices have reduced profits of Pakistan’s state-owned oil and gas companies, though their administrative affairs have been improved.