Pakistan's privatisation programme is at a pivotal juncture. Prime Minister Shehbaz Sharif has issued a fresh directive to ensure all state-owned enterprise sales proceed without delay, a move that signals the government's determination to push through its economic reform agenda despite mounting challenges. The instruction came during a high-level meeting in Islamabad, where officials reviewed the progress of a sweeping privatisation initiative encompassing 27 state-owned entities. Main Developments At the heart of the meeting was a comprehensive briefing on the three-phase privatisation programme. Officials confirmed that the financial closing for Pakistan International Airlines (PIA) and First Women Bank has been completed, with PIA's first financial closing and management transfer finalised on June 29. This milestone marks a significant step in the government's efforts to offload loss-making entities. Attention now turns to the power distribution sector. The government has advertised expressions of interest (EOIs) for three electricity distribution companies—Faisalabad Electric Supply Company (Fesco), Gujranwala Electric Power Company (Gepco), and Islamabad Electric Supply Company (Iesco)—with submission deadlines set for August 7, August 21, and September 7, respectively. International firms have already expressed interest, and investor roadshows are reportedly underway. Read also: 3 Key Points: North Korea Hits Back at US Cyber Warning The scale of these transactions is substantial. Fesco, Gepco, and Iesco collectively serve more than 14 million consumers across Punjab, the Islamabad region, and parts of Azad Jammu and Kashmir. Investors are being offered between 51 and 100 per cent shareholding, along with management control in each company, making this one of the most significant privatisation efforts in recent years. Beyond the power sector, the meeting also reviewed plans for privatising three major airports—Islamabad International, Jinnah International in Karachi, and Allama Iqbal International in Lahore. The prime minister directed officials to maintain close oversight of all ongoing transactions and ensure their completion according to agreed timelines. Background The privatisation push comes against a backdrop of economic uncertainty. Just three days before this meeting, Interior Minister Mohsin Naqvi made headlines by stating that the system had "collapsed" and that things would not improve "as long as the present system is not reset." This stark assessment underscores the urgency behind the government's reform agenda. Among the entities slated for privatisation is the Zarai Taraqiati Bank Limited (ZTBL), a critical institution for agricultural financing. The prime minister emphasised that its privatisation structure must safeguard the bank's primary role in providing agricultural loans to small and medium-scale farmers. He argued that improving farmers' access to financial resources is essential for increasing per-acre productivity and ensuring food security. The privatisation programme is being implemented in three phases, with the government aiming to streamline state-owned enterprises that have long been a drain on national resources. The completion of PIA's privatisation is particularly notable, as the national carrier had been a persistent source of financial losses for decades. Why It Matters These privatisation efforts are central to Pakistan's broader economic strategy. The government is prioritising policies aimed at strengthening the economy through private sector-led investment, industrial growth, and export promotion. Successful privatisation would reduce the fiscal burden of loss-making state enterprises while attracting much-needed foreign investment. The power sector transactions are especially critical, given the country's chronic energy challenges. Bringing private management to these distribution companies could improve efficiency, reduce line losses, and enhance service delivery to millions of consumers. For investors, the opportunity to acquire majority stakes in companies serving major industrial hubs represents a significant market entry point. In a parallel development, the prime minister also directed officials to prepare a roadmap for establishing a private equity fund to promote investment and support small and medium-sized enterprises (SMEs). He noted that the banking sector's contribution to investment financing remains limited, making alternative sources of capital increasingly important. Sectors including mining, agriculture, livestock, energy, and information technology were identified as potential key drivers of economic growth. What's Next The immediate focus is on meeting the upcoming EOI deadlines for the three power distribution companies. The response from international investors will be a key indicator of market confidence in Pakistan's privatisation programme. Roadshows with potential investors are expected to continue in the coming weeks. For ZTBL, offi