The Senate Standing Committee on Privatisation was informed that the privatisation of Pakistan International Airlines (PIA) could be completed by November 2025. The Secretary of the Ministry of Privatisation apprised the panel, chaired by Senator Dr Afnan Ullah Khan, that four companies are participating in the process but must form consortiums with established airlines to qualify for operating the airline. The committee convened to review progress on major privatisation initiatives, including PIA, power distribution companies (DISCOs), generation companies (GENCOs), and the Pakistan Minerals Development Corporation (PMDC).
The meeting addressed significant financial concerns, including PIA’s massive debt of Rs650 billion, with a suggestion to sell the airline’s two hotels to offset liabilities. The privatisation of the state-owned PMDC faced strong opposition from Senator Umer Farooq, who argued that the profitable company greatly benefits Balochistan and should not be sold. The committee chairman clarified that the agenda was to review performance, not decide on its fate.
Officials from the Power Division provided updates on the Nandipur and Guddu power plants, both on the privatisation list. While several operational issues have been resolved, critical hurdles remain, such as finalising a gas purchase agreement for Nandipur and transferring land still registered under WAPDA for Guddu. Senator Khan underscored that a guaranteed long-term gas supply is the fundamental key to attracting investors, questioning how electricity can be generated without it and noting that preparations seemed incomplete.
The government’s overarching strategy was made clear by the Privatisation Secretary, who stated that the highest level of government has decided “it will not do business anymore.” He defended the focus on profitable companies, explaining they naturally attract more investor interest, even if given away, as their future profitability under state management is uncertain. The committee concluded by emphasising the urgent need for clarity on energy supply agreements, debt restructuring, and the protection of profitable state assets before advancing with any sales.
