ISLAMABAD, Pakistan — Pakistan’s renewed push for privatisation has once again come under the spotlight following the recent Pakistan International Airlines (PIA) deal, with economists and analysts questioning whether a single high-profile transaction can translate into broader and lasting economic reform.
The successful bidding for PIA has been welcomed in some quarters as a long-awaited step towards reducing the burden of loss-making state-owned enterprises on the national exchequer. Supporters argue that the deal sends a positive signal to investors and demonstrates the government’s willingness to move ahead with difficult economic decisions after years of delays and political hesitation.
However, analysts caution that one sale alone is unlikely to change Pakistan’s economic trajectory unless it is followed by a consistent and credible privatisation strategy. State-owned enterprises continue to drain public finances, costing the government hundreds of billions of rupees annually. These losses, experts say, divert precious resources away from essential sectors such as health, education and infrastructure.
Concerns have also been raised about limited foreign investor participation, with most interest coming from local groups. Observers point to deeper structural issues — including policy uncertainty, high energy costs, regulatory hurdles and exchange rate volatility — that continue to discourage international investors from committing long-term capital to Pakistan.
Economic commentators stress that privatisation must be accompanied by broader reforms, including improvements in governance, regulatory transparency and ease of doing business. Without addressing these underlying challenges, they argue, privatisation risks becoming a one-off exercise rather than a sustainable solution to Pakistan’s fiscal and economic problems.
While the PIA transaction has provided a rare moment of optimism, experts believe the real test lies ahead. The government’s ability to maintain momentum, ensure transparency and follow through with reforms will determine whether privatisation becomes a genuine turning point or remains an isolated success in an otherwise fragile economic landscape.
This story has been reported by PakTribune. All rights reserved.