In the review, Pakistan stated that the international auditors have been hired to conduct audit of Pakistan International Airlines (PIA) and Pakistan Steel Mills (PSM) for 2018 accounts. Work is underway to complete and publish the audit of the 2018 accounts by end-December 2019 (end-December 2019 SB). Technical assistance provided by the IMF is underway to support the development of a new State-Owned Enterprise Law (end-September 2020 SB).
Pakistan is still in the process of designing strategy and criteria to classify SOEs into companies for sale, liquidation, or retaining under state ownership (end-September 2020 SB), the authorities plan to engage international partners to support these efforts.
The government will proceed with the liquidation of one small state-owned bank in September 2019 and included another small state-owned bank in the government's privatization list. Moreover, the government will ensure that the remaining two private sector banks meet the minimum capital requirements by end-June 2020.
"We (Pakistan) also recognize the need to address gaps in our bank resolution and crisis management frameworks, including the deposit insurance scheme. Thereby, we will submit, supported by IMF technical assistance, legislation to Parliament by end-May 2020 aimed at strengthening and modernizing our resolution frameworks," the report stated. The government will reduce the stock of outstanding payables through the use of power assets privatization proceeds.