KARACHI: Federal Minister for Finance and Revenue Muhammad Aurangzeb acknowledged on Thursday Pakistan’s privatization efforts have encountered setbacks, notably a failed attempt to sell the national airline last year, though he affirmed the government’s commitment to advancing the privatization agenda.
Speaking at an economic conference in Islamabad, Aurangzeb addressed the difficulties faced in divesting state-owned enterprises (SOEs), a key component of the International Monetary Fund’s (IMF) structural reform requirements.
The privatization initiative aims to alleviate the financial burden of loss-making SOEs on the national economy. Last October, the sought to sell Pakistan International Airlines (PIA) after multiple delays in the bidding process.
The final round attracted only one bid from real estate developer Blue World City, offering Rs10 billion ($36 million) for a 60 percent stake — substantially below the government’s minimum price of Rs85 billion. Consequently, the privatization ministry rejected the offer, citing non-compliance with financial expectations.

“We have faced hiccups while doing privatization,” Aurangzeb said at the Pakistan Retail Business Conference. “PIA is getting to be relaunched. But we are very determined to take this forward.

The government anticipates that PIA privatization prospects will improve following the resumption of flights to Europe in January 2025. PIA’s operations to the European Union were suspended in June 2020 due to safety concerns after a crash in Karachi, resulting in a four-and-a-half-year ban.
The minister emphasized the government’s stance on limiting its role in commercial enterprises, advocating for private sector leadership in economic activities.
“The private sector has to lead the country,” he asserted. “The government must be there to provide policy framework and policy continuity.”
Aurangzeb outlined the administration’s vision to reestablish Pakistan as a “bankable brand,” necessitating comprehensive structural reforms currently underway. These reforms include measures to control public expenditure and expedite the rightsizing of government operations.
He highlighted significant transformations in the taxation system, focusing on digitization to incorporate all businesses into an equitable tax framework.
“It is very important that we restore the trust in the tax authorities,” he noted.