- Privatisation of PIA has set a positive precedent for future privatisation of other loss-making SOEs
Interview with Mr. Khalid Tawab, former Senior Vice President, FPCCI
PAGE: Tell me something about yourself, please.
Khalid Tawab: I have been serving the business community of Pakistan for several decades in various leadership and institutional capacities, with a particular focus on international trade, economic diplomacy, and private-sector development.
Currently, I am leading international coordination and engagement for FPCCI, working closely with regional and global economic forums, chambers of commerce, and development institutions. My work revolves around strengthening Pakistan’s trade relations, promoting investment, and facilitating private-sector participation in regional and global markets.
PAGE: What is your perspective about the privatisation of PIA?
Khalid Tawab: The privatisation of PIA should be viewed as a corrective measure necessitated by decades of structural mismanagement, political interference, and the failure to adopt a proper corporate governance model. The recent sale of PIA through an open and transparent bidding process has sent a very positive signal to the private sector and significantly strengthened investor confidence. This successful transaction is expected to encourage greater private-sector participation in future privatisation of other loss-making state-owned enterprises.
Successful government-owned airlines worldwide operate under strict corporate principles, free from political hiring and bureaucratic controls. Unfortunately, PIA was never allowed to function as a commercial enterprise. Privatisation, when conducted transparently and professionally, not only improves operational efficiency, service quality, and financial discipline, but also restores credibility of the national aviation sector and contributes to broader economic reform.
PAGE: How would you comment on investment in 2026 in Pakistan?
Khalid Tawab: The year 2026 presents cautious optimism for investment in Pakistan. Although the previous two years, 2024 and 2025, witnessed significant economic challenges, the ongoing economic reforms are expected to bring greater stability in 2026. These reforms, coupled with renewed engagement with international financial institutions and expanding regional connectivity, are gradually restoring investor confidence.
However, investment momentum had earlier suffered due to high electricity and gas tariffs, escalating utility costs, and persistent water shortages, all of which sharply increased the cost of doing business and made Pakistan less competitive in the region. Addressing these structural constraints remains essential.
Key sectors such as energy, IT, mining, agriculture, tourism, and logistics continue to offer substantial opportunities. Going forward, sustained policy consistency, regulatory predictability, political stability, and cost rationalization will be decisive in unlocking Pakistan’s full investment potential and attracting both local and foreign investors.
PAGE: What is your standpoint about overseas remittances in 2026?
Khalid Tawab: Overseas remittances will continue to serve as a critical pillar of Pakistan’s external account and overall economic stability in 2026. Political stability, long-term economic policies, and a supportive business environment will play a decisive role in further strengthening this vital inflow, as confidence among overseas Pakistanis directly influences the volume and consistency of remittances.
With improved digital banking channels, stronger legal remittance frameworks, and expanding overseas employment opportunities, remittances are expected to remain resilient. The government must continue incentivizing formal remittance flows by strengthening confidence in the banking system, introducing attractive diaspora investment products, and expanding skilled labor export programs.
PAGE: What should be the policies of the government for improvement in business environment in Pakistan?
Khalid Tawab: To improve the business environment in Pakistan, the government must adopt a comprehensive reform agenda focused on ease of doing business, cost reduction, and investor confidence.
Key policy priorities should include:
- One-window operations to simplify approvals and licensing procedures
- Minimizing taxes, duties, and levies to reduce the cost of doing business and enhance competitiveness
- Speedy, transparent, and impartial decision-making by regulatory and administrative authorities
- Strong protection and facilitation of enterprises, particularly SMEs and cottage industries, which form the backbone of employment and economic growth
- Policy consistency and regulatory stability to build long-term investor confidence
- Corporate-based governance reforms in public institutions
- Reduction of bureaucratic red tape through digitalization and process reengineering
- Fair and predictable taxation policies
- Strengthening contract enforcement and dispute-resolution mechanisms
- Improving energy reliability, infrastructure, and logistics connectivity
A strong, trust-based partnership between the government and the private sector remains the only sustainable path toward long-term economic growth and national prosperity.