Pakistan is ready to privatise all state enterprises except strategic entities.
Prime Minister Shehbaz Sharif of Pakistan has announced a significant expansion in the country’s privatization agenda, revealing plans to privatize all state-owned enterprises, barring those deemed strategically essential.
This decision marks a departure from previous strategies, which primarily targeted loss-making entities for privatization.
The announcement followed a key meeting chaired by Prime Minister Sharif, focusing on the privatization process for state-owned enterprises grappling with financial losses.
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Notably, this shift comes amidst ongoing discussions with an International Monetary Fund (IMF) mission regarding a new long-term Extended Fund Facility (EFF).
These talks commenced shortly after Pakistan concluded a $3 billion standby arrangement with the IMF the previous month.
Previously, Pakistan’s privatization efforts primarily targeted loss-making state-owned enterprises, a measure strongly endorsed by the IMF to address the country’s persistent fiscal deficits.
However, Prime Minister Sharif’s recent statement indicates a broader approach, stating, “State-owned enterprises will be privatized whether they are in profit or losses.”
This proactive stance highlights government’s commitment to streamlining the economy and attracting private sector investment.
By divesting state-owned enterprises, Pakistan aims to enhance operational efficiency and alleviate financial burdens on the government.
Nonetheless, the government assures that entities critical to national security or essential services will remain under state control.
As Pakistan decides to privatise all state enterprises except strategic entities, it is important to mention of Pakistan International Airlines (PIA), one of the nation’s largest and historically loss-making enterprises, being in the final stages of privatization.
This development suggests tangible progress in the implementation of the government’s privatization agenda, with potential ramifications for Pakistan’s aviation sector and broader economic landscape.
