Pakistan pushes ahead with agri bank privatization under IMF-backed reform plan
The decision, made during a meeting of the Privatization Commission (PC) Board chaired by Muhammad Ali, Adviser to the Prime Minister, signals the government's intent to fast-track key transactions under its broader economic reform program.
The board approved the selection of a consortium led by Next Capital Limited, which ranked highest among six qualified bidders.
'ZTBL is among the priority transactions in the current privatization pipeline. The appointment of a top-tier consortium of FAs [financial advisers] reflects the government's strong commitment to executing the process in a professional, transparent and timely manner,' the Privatization Commission said in a statement.
Pakistan's privatization program, long encouraged by the International Monetary Fund (IMF) under various loan arrangements, is aimed at reducing fiscal losses from poorly performing state-owned enterprises (SOEs), improving governance and boosting private sector participation.
The IMF has repeatedly called for structural reforms, including divestment from commercial entities, to ease pressure on public finances and strengthen the country's economic outlook.
Alongside the appointment, the PC Board also approved the formation of a Negotiation Committee to finalize the Financial Advisory Services Agreement (FASA) with the selected consortium.
Other shortlisted bidders included major consortiums led by Arif Habib Limited, A.F. Ferguson, AKD Securities, Bridge Factor and JS Bank.
ZTBL provides agricultural credit and rural banking services across Pakistan.
Its privatization is seen as part of a broader effort to reform the financial sector and reduce the state's commercial footprint.
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