Barring ‘strategic entities’, Pakistan to pursue privatisation of all SOEs: PM Shehbaz

Apart from strategic entities, Prime Minister Shahbaz Sharif announced the privatisation of all state-owned enterprises (SOEs) on Tuesday.

As per a statement released by the Pakistan government, the development came after a review meeting chaired by the premier on matters related to the Ministry of Privatisation and Privatisation Commission in Islamabad.

During the meeting, the ministry presented the roadmap for the Privatisation Program 2024-2029.

While addressing the session, Prime Minister Shahbaz said privatization of all SOEs other than strategic ones will be carried out, “whether they are in profit or loss-making”.

The statement neither specified the ‘strategic’ nature of SOEs, nor the entities the government wished not to be privatised.

As per the statement, the prime minister directed all federal ministries to cooperate with the Privatisation Commission and conduct all necessary measures in this regard.

“The government’s job is not to do business but to ensure a business and investment-friendly environment and to provide facilities in this regard,” the PM was quoted as saying.

Shahbaz Sharif said privatising the SOEs will save taxpayers money, which will be utilised to improve the quality of services.

“Transparency should be a top priority in the process of privatisation,” he said.

In the meeting, Prime Minister Shahbaz Sharif directed to televise the bidding and key stages for privatisation of Pakistan International Airlines Limited (PIA).

The PM was informed that the pre-qualification process for the privatization of PIA will be completed by the end of May.

Moreover, it was informed that the process of consultation regarding the disinvestment of the ownership of the Roosevelt Hotel in United States, a key asset of PIA, is ongoing.

The meeting presided by the Prime Minister was also informed that First Women Bank Limited is working on a government-to-government transaction with the United Arab Emirates.

The development comes after an International Monetary Fund (IMF) mission opened talks in Islamabad for a new long-term Extended Fund Facility (EFF) following Pakistan’s completion of a $3 billion Stand-By Arrangement (SBA) last month.

The government’s privatisation of SOEs remains one of the key conditions assigned by the Washington-based Fund to avail a new programme.