Pakistan finalizes PIA, first Women Bank privatization

June 12, 2026 (MLN): Pakistan has completed the privatization of Pakistan International Airlines (PIA) and First Women Bank as part of the government's ongoing divestment programme, Finance Minister Senator Muhammad Aurangzeb said.

PIA's transfer to the private sector was concluded in a transaction valued at Rs185 billion, described as a milestone in advancing Prime Minister Shehbaz Sharif's broader agenda of positioning private enterprise as the primary driver of economic growth.

The government's privatization pipeline remains active, with planned divestments covering generation companies (GENCOs), power distribution companies (DISCOs), banks, insurance firms and airports. Letters of intent for three DISCOs have already been issued.

On fiscal reforms, Aurangzeb said overhauling the domestic revenue collection system through structural changes remains among the government's highest priorities.

Five new citizen-facing initiatives have been launched to broaden the reach of economic growth. Under the "Zarkhez" programme, over 750,000 small farmers will receive loans totalling Rs300bn through a fully digital process.

A separate housing finance scheme will extend credit to low- and middle-income families at a five percent markup.

The Pakistan Accelerated Vehicle Electrification initiative targets the provision of electric motorcycles and e-rickshaws, while the Prime Minister's Fan Replacement Program will substitute energy-intensive fans with efficient models to lower household power consumption.

Digital financial inclusion has expanded significantly. The number of merchants integrated into digital payment systems has risen to 1.69m from 500,000 a year earlier, while digital banking users have grown from 95 million to 133 million. Annual digital transactions have climbed from 6.9bn to 10.1bn.

Formal banking channels now account for 92% of all workers' remittances received by the country.

Copyright Mettis Link News