Govt, PBC advance privatization, private investment, economic reforms

August 11, 2026 (MLN): The government and the Pakistan Business Council (PBC) have agreed to strengthen private-sector participation in the economy through privatization, State-Owned Enterprise (SOE) restructuring, rightsizing and capital-market initiatives.

Advisor to the Finance Minister Khurram Schehzad held discussions with PBC Chairman Ziad Bashir and Chief Executive Officer Javed Kureishi at the Finance Division, focusing on measures to promote investment and advance structural economic reforms.

The discussions covered the proposed privatization of power distribution companies (DISCOs), banks and airports, with emphasis on improving efficiency, attracting investment and enhancing service delivery through increased private-sector involvement.

The participants also explored plans to bring major public-sector entities to the capital markets through Initial Public Offerings (IPOs), including the State Life Insurance Corporation (SLIC).

Greater participation by private and institutional investors was highlighted as a means to improve corporate governance, transparency, operational efficiency and access to capital.

PBC expressed support for the government’s rightsizing initiative and agreed to provide detailed recommendations on privatization, SOE restructuring, rightsizing and other areas where private-sector participation can improve economic efficiency and support investment-led growth.

Tax rationalization and the formulation of a medium-term tax policy framework were also discussed. The participants stressed the need for a predictable, transparent and competitive tax system that encourages investment, business expansion and sustained economic activity.

PBC will provide business community input for consideration in the ongoing tax policy process.

PBC also welcomed measures introduced under the Federal Budget FY27, particularly the shift towards broadening the tax base and economic activity rather than relying primarily on increasing the tax burden.

The council supported incentives for exporters and businesses aimed at improving competitiveness, lowering the cost of doing business and encouraging investment and expansion.

Khurram Schehzad emphasized the importance of continued engagement with the business community to develop practical and sustainable economic reforms, improve the business environment and strengthen investor confidence.

Both sides agreed to maintain consultations on economic reforms and policies aimed at increasing private-sector investment, enhancing competitiveness and supporting sustainable economic growth.

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