In response to Pakistan’s deepening economic woes, Prime Minister Shehbaz Sharif has taken a bold step by ordering the privatization of all state-owned enterprises (SOEs) except for those deemed strategically vital. This move aims to address the country’s financial challenges and stimulate economic growth, as reported by ARY News.
Drive for Privatization
Chairing a review meeting on matters concerning the Ministry of Privatization and Privatization Commission in Islamabad, Prime Minister Shehbaz emphasized the urgency of privatizing SOEs. He stressed that both profitable and loss-making enterprises, excluding strategically important ones, would undergo privatization.
Roadmap for Privatization Program
During the meeting, officials from the privatization ministry and the Privatization Commission presented a roadmap for the Privatization Program 2024-2029. This comprehensive plan outlines the strategy for privatizing various state-owned entities in the coming years, as per ARY News.
Government’s Facilitation Role
PM Shehbaz Sharif reiterated that the government’s primary role is to create a conducive environment for business and investment. He emphasized that facilitating investors is crucial for economic progress and job creation, underscoring the significance of privatization in saving taxpayers’ money and enhancing service delivery.
Live Broadcast of Privatization Process
In a bid to ensure transparency and accountability, PM Shehbaz directed federal ministries to actively participate in the privatization process and cooperate with the Privatization Commission. He also instructed for the live telecast of the privatization proceedings of Pakistan International Airlines Company Limited (PIA) and other key institutions.
Progress Update and Future Plans
The meeting also reviewed the progress made thus far in the privatization of state-owned enterprises. It was reported that the pre-qualification process for PIA privatization is nearing completion, with power distribution companies also slated for privatization under the 2024-2029 program.
Priority on Loss-Making Enterprises
Furthermore, the meeting emphasized prioritizing the privatization of loss-making SOEs to expedite the process. To streamline the privatization efforts, a panel of experts will be appointed within the Privatization Commission.
Ministerial Coordination and Deadline
The review meeting was attended by federal ministers and relevant senior officers, reflecting a coordinated approach towards achieving privatization goals. Federal Minister for Finance Muhammad Aurangzeb had earlier directed ministries to submit proposals for SOE categorization by May 20, underscoring the government’s commitment to timely implementation.
Approval and Phasing of SOEs
Last week, the Cabinet Committee on Privatization (CCOP) greenlit 24 state-owned enterprises for the privatization program. The CCOP instructed the privatization ministry to coordinate with relevant ministries to determine the phasing of each entity’s privatization, signaling a significant step forward in Pakistan’s economic reform agenda.