ISLAMABAD: The government has assured the International Monetary Fund (IMF) that it will accelerate the privatization of state-owned enterprises, with plans to begin the sale of electricity distribution companies from 2027.
The government also shared its plan to phase out tax incentives for Special Economic Zones by 2035.
Sources said that a contingency plan has been presented to the IMF in case the privatization of power distribution companies cannot proceed as planned. Under this plan, some companies may be merged instead.
Officials confirmed that the 51 to 100 percent shares of DISCOs such as IESCO, GEPCO, and FESCO will be sold at the beginning of 2027, with administrative control also transferred to the private sector.
The government informed the IMF that progress is underway for the privatization of 27 state-owned enterprises, while privatization agreements for PIA and First Women Bank have been completed. Delays in appointing a new financial advisor for the Roosevelt Hotel were also disclosed.
Additionally, the government committed to reducing the state’s role in the economy, implementing business-friendly reforms, tariff adjustments, and removing unnecessary restrictions. Measures to expand the tax net, maintain fiscal discipline, and align electricity and gas rates with costs were also highlighted.
Authorities emphasized targeted support for vulnerable groups, assuring that the IMF considers economic reforms, transparency, and anti-corruption measures essential for successful privatization. The appointment of independent boards in most commercial state enterprises has been completed.
