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Pakistan’s privatization chief vows faster asset sales, says PIA to be sold by year-end

Pakistan’s privatization chief vows faster asset sales, says PIA to be sold by year-end
Passengers board a Pakistan International Airlines (PIA) flight, the first commercial international flight since the Taliban retook power last month, at the airport in Kabul on September 13, 2021. (AFP/ file)
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Pakistan’s privatization chief vows faster asset sales, says PIA to be sold by year-end

Pakistan’s privatization chief vows faster asset sales, says PIA to be sold by year-end
  • Pakistan has been attempting to privatize debt-ridden PIA to raise funds, reform state-owned enterprises
  • Muhammad Ali says Islamabad hiring sector specialists, lawyers, mergers and acquisitions experts to aid in privatizations

ISLAMABAD: Pakistan’s privatization chief Muhammad Ali announced on Monday that the government aims to complete the sale of Pakistan International Airlines (PIA) by the end of this year, part of a sweeping new privatization program backed by what he called “the highest level of commitment.”

Pakistan’s government has been attempting to privatize the debt-ridden PIA to raise funds and reform state-owned enterprises as envisaged under a $7 billion International Monetary Fund (IMF) program secured last year. Late last year, a deal fell through after a potential buyer reportedly offered $36 million for a 60 percent stake in the national flag carrier, a fraction of the asking price of approximately $303 million.

In July, Pakistan prequalified four investors for the sale of PIA. Among the bidding groups, one is a consortium of major industrial firms Lucky Cement, Hub Power Holdings, Kohat Cement and Metro Ventures. Another is led by investment firm Arif Habib Corp. and includes fertilizer producer Fatima Fertilizer, private education operator The City School, and real estate firm Lake City Holdings. Additionally, Fauji Fertilizer Company, a military-backed conglomerate, and Pakistani airline Airblue, have been approved to bid for PIA.

“We are targeting that we should privatize the PIA before the end of the year,” Ali told reporters at a news conference, flanked by Finance Minister Muhammad Aurangzeb and other members of the government’s economic team.

Ali vowed that the government was dedicated to completing the privatization process quickly, stating that it was hiring sector specialists, lawyers, mergers and acquisitions experts and investment bankers to facilitate transactions.

He said the government had divided the process to privatize state-owned entities into three phases, adding that it had completed all three. Ali said the government was working on several transactions at a time, explaining that it had to consider the market, investors’ appetites, their interest and the health of the companies at stake.

“Keeping all these things in mind, we are working on privatization as fast as we can, at full speed,” he said.

Ali mentioned that the government had sold the state-owned First Women Bank to a UAE group for Rs5 billion [$17.5 million], which had a total equity of Rs3 billion [$10.5 million]. 

The official spoke of the government’s privatization efforts regarding the state-owned House Building Finance Corporation, saying its privatization process had been underway for the past two years. He disclosed that the government was in discussions with an entity regarding its sale. 

“We are getting offers from them. This is a negotiated sale,” Ali said. “And if we get our valuation in this, then we will go ahead in this.”

DISCOS, ROOSEVELT HOTEL

Ali spoke about the privatization of power distribution companies (DISCOs), saying that the government would be careful in their sale as it would affect “every Pakistani.”

“So we have to be sure that when we sell them, we sell them in a way that in the coming times, there is power supply in every area,” he said. “There is less load shedding and power is supplied at the right cost. So, we have made a restructuring plan of all three DISCOs.”

About Pakistan’s plan to sell its Roosevelt Hotel in New York, Ali mentioned that Jones Lang LaSalle (JLL), Islamabad’s financial adviser for the process, had stepped down due to conflict of interest. 

“Now that we are going to appoint a [new] adviser, many top names globally have participated in it,” the official said. “Citibank, Morgan Stanley, Cushman and Wakefield, CBRE and Newmark. These are the top names in New York market and they are now interested in advising the Pakistan government.”

The official clarified that Islamabad did not want to sell its airports in the major cities of Karachi, Lahore and Islamabad, saying that authorities were engaging the private sector to manage them. 

“In Islamabad, we are talking to the UAE,” he said. “In Karachi and Lahore, we will go to bidding.”


Pakistan, ֱ ties enter ‘new era’ with investments planned in key sectors — minister

Pakistan, ֱ ties enter ‘new era’ with investments planned in key sectors — minister
Updated 4 min 10 sec ago

Pakistan, ֱ ties enter ‘new era’ with investments planned in key sectors — minister

Pakistan, ֱ ties enter ‘new era’ with investments planned in key sectors — minister
  • The statement came days after Pakistan, ֱ agreed to launch an Economic Cooperation Framework to strengthen trade, investment ties
  • Both sides are set to discuss several high-impact projects under the framework, focusing on energy, industry, mining, IT and tourism sectors

ISLAMABAD: Pakistan’s Defense Minister Khawaja Asif on Monday said that relations between Pakistan and ֱ have entered a “new era” with multi-billion-dollar investments planned in key sectors.

The statement came days after Pakistan and ֱ agreed to launch an Economic Cooperation Framework to strengthen trade and investment ties, following Prime Minister Shehbaz Sharif’s meeting with Saudi Crown Prince Mohammed bin Salman on the sidelines of the Future Investment Initiative summit in Riyadh last month.

It followed the signing of a security agreement between the two countries, pledging that aggression against one would be treated as an attack on both. The move appeared to formalize longstanding military cooperation into a binding commitment aimed at bolstering joint deterrence as both sides expand their partnership.

Speaking at a seminar in Islamabad, Defense Minister Asif said the Pakistani prime minister’s recent engagements with the Saudi leadership have reinvigorated strategic cooperation between the two countries and open pathways for multi-billion-dollar investments in energy, mining and infrastructure sectors.

“With ֱ, our relations have entered a new era of mutual confidence and economic collaboration,” he said. “The renewed momentum in the Saudi-Pak Supreme Coordination Council stands as a hallmark of this strengthened partnership.”

Pakistan and ֱ are set to discuss several strategic and high-impact projects, focusing on energy, industry, mining, information technology, tourism, agriculture and food security, under the economic framework, according to a Pakistani government statement issued late last month.

During their meeting in Riyadh last month, PM Sharif and the Saudi crown prince had expressed hope that the next meeting of the Saudi-Pakistan Supreme Coordination Council, the highest forum for giving strategic direction to bilateral relations, would be convened soon to advance the agenda.

Pakistan and ֱ have long enjoyed close ties but have sought to broaden their cooperation in recent years. Last year, the two countries signed 34 memorandums of understanding worth $2.8 billion across multiple sectors.

The two nations share longstanding ties rooted in faith, mutual respect and strategic cooperation, with Riyadh remaining a key political and economic partner of Islamabad. The Kingdom also hosts more than 2.5 million Pakistani expatriates, the largest source of remittances for Pakistan’s over $400 billion economy.


Pakistan October inflation rises to 6.2 percent, highest in 12 months

Pakistan October inflation rises to 6.2 percent, highest in 12 months
Updated 03 November 2025

Pakistan October inflation rises to 6.2 percent, highest in 12 months

Pakistan October inflation rises to 6.2 percent, highest in 12 months
  • The government had projected 5–6 percent range for Oct.
  • Floods, trade disruptions strain supplies, lift prices

KARACHI: Pakistan’s consumer price inflation accelerated to 6.2 percent year-on-year in October, the highest reading in 12 months, data showed on Monday, as food prices rose following floods and temporary border disruptions strained supply chains.

On a month-on-month basis, prices were up 1.8 percent, the Pakistan Bureau of Statistics said. The data came a week after the State Bank of Pakistan kept its key policy rate unchanged at 11 percent for a fourth straight meeting, saying inflation was expected to stay above its 5 percent to 7 percent target range for a few months before easing next fiscal year.

Inflation has moderated from nearly 30 percent a year ago to below 6 percent in mid-2025 before edging up again, as the fading base effect and temporary supply shocks began to lift prices.

Last week the government forecast inflation in the 5 percent to 6 percent range for October, noting that flood-related supply pressures and border closures with Afghanistan had pushed up prices of some essential goods. Floods in August swamped farmland and industrial hubs in Punjab, killing more than 1,000 people, displacing 2.5 million and damaging crops and factories, tightening food supplies across the country.

The pressure was compounded by border clashes with Afghanistan that shut major crossings used for food and fuel trade. The two countries later agreed to extend a ceasefire, but crossings remained restricted after October 11, disrupting commerce and deepening shortages in Pakistan’s northwestern regions.

The central bank said the overall economic outlook had improved, with better-than-expected crop yields, stronger industrial activity and a rebound in high-frequency indicators, though risks from global commodity volatility and domestic energy prices remain.

A private survey, meanwhile, showed manufacturing activity contracted for a second straight month in October, though the pace of decline slowed.

The HBL Pakistan Manufacturing PMI rose to 49.6 from 48.0 in September, with firms citing weak demand, higher taxes and power outages as key drags, even as business confidence remained cautiously optimistic. A reading below 50 indicates a contraction.


Pakistan president to outline social protection, green jobs plan at Doha UN summit

Pakistan president to outline social protection, green jobs plan at Doha UN summit
Updated 03 November 2025

Pakistan president to outline social protection, green jobs plan at Doha UN summit

Pakistan president to outline social protection, green jobs plan at Doha UN summit
  • Zardari to meet world and regional leaders, including Qatari leadership and UN officials
  • Pakistan to present new 2026–28 Social Protection and Jobs Compact aligned with UN goals

ISLAMABAD: Pakistan’s President Asif Ali Zardari will outline his country’s plan to expand social protection and promote green employment at the Second World Summit for Social Development in Doha this week, state broadcaster Radio Pakistan reported on Monday.

The three-day summit from Nov. 4-6, organized under the auspices of the United Nations General Assembly, brings together world leaders and policymakers to discuss strategies for advancing social development, promoting decent work, and strengthening inclusive safety nets.

Pakistan’s participation highlights its efforts to align domestic initiatives like the Benazir Income Support Program (BISP), the country’s flagship cash-transfer initiative for low-income households, with the Sustainable Development Goals (SDGs), as the country seeks to integrate employment and climate considerations into its social protection agenda.

“The President will underscore Pakistan’s commitment to inclusive growth and social protection, with the Benazir Income Support Program at the center of efforts to reduce poverty and build resilience among vulnerable groups,” Radio Pakistan reported.

According to the broadcaster, Zardari will hold meetings with global and regional leaders, including the leadership of Qatar, as well as heads of multilateral organizations such as the United Nations and other international bodies.

During these discussions, he is expected to emphasize Pakistan’s readiness to pilot a Doha-aligned Social Protection and Jobs Compact (2026–28), aimed at expanding coverage to informal workers, persons with disabilities, and children while promoting decent and green employment.

The initiative aligns with the Doha Political Declaration and international commitments on social protection and financing for development.

Zardari will also highlight Pakistan’s intent to work with development partners to mobilize funding through mechanisms such as the SDG Stimulus, debt-for-social or climate swaps, and South–South cooperation under China’s Global Development Initiative (GDI).

Radio Pakistan said the president will reaffirm Pakistan’s resolve to translate the outcomes of the Doha Summit into concrete actions that strengthen social protection systems and support sustainable, inclusive economic growth.


Saudi flyadeal launches Lahore flights, expands Pakistan network to five cities

Saudi flyadeal launches Lahore flights, expands Pakistan network to five cities
Updated 03 November 2025

Saudi flyadeal launches Lahore flights, expands Pakistan network to five cities

Saudi flyadeal launches Lahore flights, expands Pakistan network to five cities
  • Twice-weekly Lahore flights bring flyadeal’s Pakistan network to five cities, 18 weekly services
  • Expansion aligns with Saudi Vision 2030 goals to boost tourism and regional connectivity

ISLAMABAD: ֱ’s low-cost airline flyadeal has launched scheduled flights to Lahore, its fifth destination in Pakistan this year, as part of a rapid regional expansion plan aligned with the Kingdom’s Vision 2030 strategy to boost connectivity and tourism.

A subsidiary of the national carrier Saudia, flyadeal has become one of the Middle East’s fastest-growing airlines since its launch in 2017. The Lahore route adds to services to Karachi, Islamabad, Peshawar and Sialkot, all introduced since February 2025, bringing the total number of weekly flights between the two countries to 18.

Flight F3 655 from Riyadh’s King Khalid International Airport landed at Lahore’s Allama Iqbal International Airport last week where it was greeted with a water-cannon salute and a ceremony attended by airport and airline officials.

“It’s been an incredible achievement to build a countrywide operation from one to five cities across Pakistan in just eight months,” said Steven Greenway, flyadeal’s Chief Executive Officer.

“Entering any market is always a baby-step process. But our operational and commercial teams have done an impressive job to plan, launch, expand and set up the necessary infrastructure so quickly to sell, market and promote our flights in a short space of time.”

Tickets for flyadeal’s Pakistan services are available via the airline’s website, mobile app and partner travel agencies, the company said.

Farooq Ahmad, flyadeal’s Head of Sales, said:

“Pakistan has proved to be one of flyadeal’s success stories. We’ve matured very quickly in a country building confidence within the travel agency community to sell, and among consumers to fly with us especially being a relatively new entrant to a dynamic market that Pakistan is.”

The twice-weekly Lahore flights will serve both inbound business travelers and outbound Pakistani expatriates working in the Kingdom. All Pakistan routes are operated with Airbus A320 aircraft configured with 186 Economy Class seats.

flyadeal currently flies 42 A320s from bases in Riyadh, Jeddah and Dammam to more than 30 destinations across the Middle East, North Africa, Europe and South Asia.

Under Saudi Vision 2030, the airline plans to triple its network to over 100 destinations with a fleet exceeding 100 aircraft by 2030.


Pakistan’s competition watchdog urges creation of steel ministry to reform struggling sector

Pakistan’s competition watchdog urges creation of steel ministry to reform struggling sector
Updated 03 November 2025

Pakistan’s competition watchdog urges creation of steel ministry to reform struggling sector

Pakistan’s competition watchdog urges creation of steel ministry to reform struggling sector
  • CCP cites lack of national policy, weak regulation and tax exemptions hurting competitiveness
  • Recommends new ministry, formalization of undocumented units, adoption of green technologies

KARACHI: The Competition Commission of Pakistan (CCP) has called for the establishment of a dedicated steel ministry and the formulation of a national policy to address long-standing distortions in the country’s steel industry, which it says faces weak regulation, unfair tax exemptions and heavy import dependence.

The steel sector remains central to Pakistan’s manufacturing base, contributing significantly to exports and employment but struggling with fragmentation and policy neglect. Large Scale Manufacturing accounts for more than 69 percent of total manufacturing and 8.2 percent of GDP, yet per capita steel consumption is only 47 kilograms, far below regional averages. The industry depends heavily on imported scrap, faces chronic energy shortages and produces nearly 60 percent of its output below standard due to weak enforcement and regulatory oversight.

In light of these challenges, the Competition Commission of Pakistan on Sunday released a report titled “Competition Assessment Study of the Steel Sector in Pakistan,” identifying competition-related bottlenecks and recommending reforms to promote fair market conditions and long-term sustainability.

“The study underscores the absence of a national steel policy and recommends the establishment of a dedicated Steel Ministry, citing successful models from China and India,” the CCP said in the statement.

According to the report, Pakistan’s manufacturing sector contributes 71 percent of total exports and employs around 15 percent of the workforce. In FY24, local steel production reached 8.4 million metric tons (MT), including 4.9 million MT of long steel and 3.5 million MT of flat steel, while imports of steel scrap totaled 2.7 million MT, underscoring the sector’s reliance on imported raw material.

The report said Pakistan Steel Mills (PSM), once a strategic national asset with a 1.1 million-ton annual capacity, has been non-operational since 2015 due to mounting losses and outdated technology, leaving liabilities of Rs400 billion ($1.4 billion). In contrast, countries such as China, India, and Russia advanced through targeted state support, investment in technology, and efficient resource management.

The CCP cited multiple institutional weaknesses, including an Ease of Doing Business Committee that lacks industry expertise and frequent changes in SROs that create policy uncertainty. It noted that tax exemptions in ex-FATA/PATA regions allow 1.5 million tons of untaxed steel to enter settled markets annually, resulting in revenue losses of about Rs40 billion ($144 million).

The commission proposed developing a comprehensive national steel policy, rationalizing taxes and ensuring stable regulatory frameworks. It also recommended expanding the Ease of Doing Business Committee to include industry experts and CCP representation, strengthening the Ministries of Industries and Commerce, and accelerating National Tariff Commission (NTC) processes.

The CCP urged enforcement of quality standards, formalization of undocumented producers, removal of tax distortions, and incentives for Direct Reduced Iron (DRI) technology, green production methods and local iron ore mining.

“The CCP will continue working with all the stakeholders to develop pro-competition reforms to promote competition and long-term sustainability in the steel sector, much in line with the international best practices,” the statement added.