Pakistan’s federal government has made notable headway in its long-running reform agenda for state-owned enterprises, completing the winding-up or privatization of several major public-sector entities over the past six months. The developments mark a significant step toward reducing fiscal stress and restructuring loss-making institutions that have historically placed a heavy burden on the national exchequer.
According to official updates, Utility Stores Corporation, Pakistan Agricultural Storage and Services Corporation (PASSCO), Pakistan International Airlines Corporation (PIA), and First Women Bank have all been classified as completed cases under the government’s state-owned enterprise reform framework. These actions reflect a decisive shift in policy direction, signaling the authorities’ intent to curtail recurring losses and improve overall economic efficiency.
The progress was highlighted in a social media post by Khurram Schehzad, who noted that the completion of reforms for these entities represents a major milestone in Pakistan’s economic restructuring efforts. He emphasized that Utility Stores, PASSCO, and PIA were among the largest SOEs in the country, each carrying long-standing financial inefficiencies and significant operational losses that had consistently strained public finances.
Utility Stores Corporation, once envisioned as a mechanism to provide subsidized essential goods to the public, had increasingly become a source of fiscal leakage due to inefficiencies, governance challenges, and mounting losses. Similarly, PASSCO, which played a central role in agricultural commodity procurement and storage, faced criticism over high operational costs and limited effectiveness in stabilizing commodity markets. Pakistan International Airlines, the national flag carrier, had for years been cited as one of the most loss-making SOEs, requiring repeated government bailouts to remain operational.
The inclusion of First Women Bank among the completed reforms also reflects the government’s broader approach toward rationalizing the public-sector banking footprint. The bank, established to support women-focused financial inclusion, had struggled to achieve sustainable profitability within the public-sector framework. Its restructuring or privatization is part of a wider reassessment of the state’s role in commercial banking.
These measures are closely aligned with Pakistan’s broader structural adjustment program, which aims to stabilize the economy, improve fiscal discipline, and restore investor confidence. International financial institutions have repeatedly emphasized the need for SOE reforms as a prerequisite for long-term macroeconomic stability, noting that persistent losses in public enterprises crowd out development spending and limit the government’s capacity to invest in social and infrastructure priorities.
Officials indicate that the reform momentum is set to continue, with additional state-owned enterprises already identified for restructuring, privatization, or winding-up in the near future. The objective is to gradually reduce the state’s involvement in commercial activities while strengthening regulatory oversight and encouraging private-sector participation in key sectors of the economy.
Economic analysts view the completion of these reforms as a critical signal to both domestic and international stakeholders. By addressing some of the most entrenched inefficiencies in the public sector, the government is seeking to demonstrate policy consistency and commitment to difficult but necessary reforms. While challenges remain in terms of implementation, labor adjustments, and service continuity, the progress achieved so far is being seen as a step toward a more sustainable fiscal framework.
As Pakistan continues to navigate economic pressures, including debt obligations and revenue constraints, the reform of state-owned enterprises is expected to remain a central pillar of economic policy. The recent completion of high-profile SOE cases underscores a shift toward accountability, efficiency, and long-term financial sustainability within the public sector.
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