Lula Rules Out Privatizing Correios and Pledges State-Led Recovery

Overview

• In a televised interview President Luiz Inácio Lula da Silva said he does not consider selling the federal postal service and committed to recover the company under state control.
• Lula blamed Correios' decline on a failure to adapt to new delivery competitors and said the current management must trim expenses to restore viability.
• The government signaled openness to selective partnerships with domestic or foreign firms as a tool for modernization rather than full privatization.
• Correios reported deep financial losses, including an R$8.5 billion deficit in 2025 and a R$3.16 billion loss in the first quarter of 2026, marking 14 consecutive quarters of negative results.
• Correios operates in every Brazilian municipality, so the president framed recovery as a public-service priority and a politically significant choice ahead of the election.