Islamabad: In a significant development, Prime Minister Shehbaz Sharif of Pakistan declared on Tuesday that the country would embark on an extensive privatization initiative encompassing all state-owned enterprises (SOEs), except for those deemed strategically vital.
The decision to broaden the privatization scope follows a meeting chaired by Prime Minister Sharif to discuss the privatization process of loss-making state enterprises, as stated by his office.
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This announcement comes on the heels of talks initiated by an International Monetary Fund (IMF) mission in Islamabad, aimed at negotiating a new long-term Extended Fund Facility (EFF). These discussions were initiated after Pakistan successfully completed a $3 billion standby arrangement with the IMF last month.
Previously, Pakistan’s privatization efforts were primarily focused on addressing the financial struggles of loss-making state-owned enterprises. However, in a departure from past strategies, Prime Minister Sharif’s administration has decided to extend privatization measures to include both profitable and unprofitable state-owned entities.
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According to the statement issued by the Prime Minister’s office, “State-owned enterprises will be privatized whether they are in profit or losses,” underlining the government’s commitment to comprehensive reform in this sector.
Of particular note is the impending privatization of Pakistan International Airlines (PIA), one of the largest loss-making enterprises in the country. The privatization process for PIA is reportedly in its final stages, signaling a significant milestone in Pakistan’s broader privatization agenda.
