From PIA to power and banks: What is Pakistan’s 'Agenda-5' privatisation drive?

Pakistan’s “Agenda-5” privatisation: Which state assets are up for sale?

• Pakistan to privatize major state-owned firms to meet IMF bailout conditions
• Five entity groups, including banks and utilities, to be privatized by 2026.
• Economists warn of uncertain long-term effects on public services and assets.

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After completing the privatisation of its national flag carrier, Pakistan International Airlines (PIA), Pakistan is moving to sell several other major state-owned enterprises as the cash-strapped country seeks to meet International Monetary Fund (IMF) conditions and avert the risk of default.

Pakistan is also weighing options for the Roosevelt Hotel in Midtown Manhattan as part of its broader effort to fulfil IMF commitments, according to a Bloomberg report published in October 2025.

PIA, once the country’s flagship airline, had been incurring heavy losses for years before its privatisation.

Government documents and cabinet-level discussions in Islamabad indicate that a wide range of public-sector entities, including power distribution companies, banks, hotels, insurance firms, and energy assets, could be transferred to private ownership by the end of 2026.

Pakistan’s foreign debt is estimated to have crossed $131 billion, with analysts telling CNN-News18 that the government is increasingly borrowing to meet routine expenditures.

The International Monetary Fund has made large-scale privatisation a key condition for any future bailout, warning that without structural reforms and asset sales, Pakistan could face a debt crisis similar to Sri Lanka’s collapse.

Pakistani officials have shortlisted five major groups of state-run entities for privatisation over the next year under what is informally being referred to as the “Agenda-5” plan, according to CNN News18 report.

• Power distribution companies: State-owned utilities have long struggled with power theft and transmission losses. Distribution firms such as IESCO (Islamabad), FESCO (Faisalabad), and GEPCO (Gujranwala) are expected to be transferred to private operators.
• Banking sector: First Women Bank Limited (FWBL) and Zarai Taraqiati Bank Limited (ZTBL) are also slated for privatisation, with officials arguing that private management would enhance efficiency.
• Hotels and real estate: The government intends to privatise the Roosevelt Hotel in New York and Lahore’s Services International Hotel, aiming to boost foreign-exchange reserves.
• Energy generation companies: Several loss-making public power plants, including Jamshoro and Lakhda, are under consideration for divestment to reduce the fiscal burden.
• Insurance and retail networks: The State Life Insurance Corporation and the nationwide Utility Stores network have been included in the privatisation plan as the government moves away from direct commercial involvement.
• Debate over long-term impact: The privatisation programme, implemented under Pakistan’s hybrid political system with oversight from Prime Minister Shehbaz Sharif and Army Chief General Asim Munir, has triggered widespread debate. Supporters maintain it is the only viable way to stabilise the economy, while critics argue that selling state assets reflects prolonged mismanagement and risks weakening national self-reliance.

While the planned transactions could provide short-term financial relief, economists warn that the long-term consequences for public services, economic sovereignty, and strategic assets remain uncertain and deeply contested.