Bankrupt Pakistan forced to sell banks, famous hotels, other assets after national airlines due to…, PM Shehbaz Sharif brings Agenda 5, here’s all you need to know
Five major enterprises have been shortlisted for privatization in the next 12 months under Pakistan’s “Agenda-5” plan, according to officials. In the Banking Sector (First Women Bank & ZTBL), The First Women Bank Limited (FWBL) and Zarai Taraqiati Bank Limited (ZTBL) are planned to be offered for sale.
Cash-strapped Pakistan is selling state-owned companies as well as Pakistan International Airlines (PIA) to meet conditions set by the International Monetary Fund (IMF) for its $7 billion bailout package. The move comes as part of efforts to stabilize Pakistan’s economy, reduce debt and attract private investment.
In the privatization drive, Pakistan is racing to meet International Monetary Fund (IMF) conditions and eliminate the risk of default by privatizing several public sector entities covering electricity distribution, banking, hospitality, insurance and energy before the end of 2026, as outlined in government documents and cabinet discussions.
Pakistan’s “Agenda-5” plan
Five major enterprises have been shortlisted for privatization in the next 12 months under Pakistan’s “Agenda-5” plan, according to officials. In the Banking Sector (First Women Bank & ZTBL), The First Women Bank Limited (FWBL) and Zarai Taraqiati Bank Limited (ZTBL) are planned to be offered for sale. In the area of Hotels and Real Estate Assets, the government plans to privatize the historic Roosevelt Hotel in New York and the Services International Hotel in Lahore. Under Power Generation Companies (Gencos), loss-making public power plants are being considered, including the plants in Jamshoro and Lakhda. The State Life Insurance Corporation and its network of Service Stores in Insurance and Retail Networks across the country have been added to the privatization list.
Pakistan’s economic crisis
Pakistan’s economic crisis is worsening as its external debt exceeds $131 billion. The government is struggling to meet its daily expenses, relying heavily on borrowing. To solve this problem, the International Monetary Fund (IMF) is pushing for large-scale privatization as a condition of future bailout arrangements. Therefore, the government planned to privatize key sectors such as energy distribution, banking and hotels to generate revenue and reduce fiscal deficits. However, this decision was heavily criticized; While some argue this will help Pakistan’s economy, others worry about job losses and reduced national control over strategic assets.
(With input from institutions)
