Pakistan Prime Minister Shehbaz Sharif to sell all state-owned enterprises to private owners due to lack of funds

Facing financial difficulties, Pakistan’s Prime Minister Shehbaz Sharif said on Tuesday that he would privatize all state-owned enterprises, including the financially troubled Pakistan International Airlines.

This decision expands on the government’s intention to privatize only loss-making state-owned enterprises.

The announcement to privatize these companies, excluding strategic businesses, comes as Pakistan begins negotiations with the International Monetary Fund (IMF) for a new Extended Extended Fund Facility (EFF).

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According to reports, Sharif announced this while chairing a review meeting on the privatization process of loss-making state-owned enterprises (SOEs).

According to reports geography newsPrime Minister Shehbaz Sharif said that apart from strategic state-owned enterprises, all other entities, whether profitable or loss-making, will be privatized.

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Mr. Sharif stressed that the role of the government is not to engage in business operations but to promote a business and investment friendly environment, urging all ministries and agencies to cooperate with the privatization commission and take necessary measures. instructed.

Emphasizing the need for transparency in the privatization process, the Prime Minister ordered that the privatization process of Pakistan International Airlines (PIA), including bidding and other important stages, be televised. The report stated that privatization of PIA is in the final stages.

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Pakistan’s ailing national airline has emerged as the country’s third-largest public sector loss-making company, requiring monthly spending. INR11.5 billion for debt repayment.

Additionally, the report said the privatization processes of other institutions will also be broadcast live.

A roadmap for the privatization program from 2024 to 2029 was also presented during the meeting. express tribune The newspaper reported.

According to the report, ministers were informed that loss-making state-owned enterprises would be prioritized for privatization and that a panel of qualified experts had been appointed in advance to the privatization committee to speed up the sale process. It is said that it was done.

Prime Minister Sharif’s government is pushing for the privatization of several state-owned enterprises to deal with the strain on the finance ministry and widespread fiscal stress.

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Previously, debt-ridden Pakistan had planned to privatize only loss-making state-owned enterprises. dawn The newspaper reported.

Finance Minister Muhammad Aurangzeb on Sunday said privatization was necessary to achieve economic stability in the country.

“If we want economic stability for the country, we have to move towards privatization,” Aurangzeb said while speaking at the pre-budget meeting for 2024-25.

As highlighted in the report, the Washington-based IMF has long recommended privatization for Pakistan, which faces severe financial shortfalls.

Pakistan narrowly avoided default last summer, and its economy stabilized after the end of the last IMF program. Inflation fell from a record high of 38% in May last year to about 17% in April.

Despite these improvements, the country still faces a significant budget deficit. Although import control measures contributed to curbing the external balance of payments deficit, this led to stagnation in growth. Compared to last year’s negative growth, this year’s growth rate is expected to be around 2%.

(With inputs from PTI)