In a decisive move aimed at streamlining the economy, Prime Minister Shehbaz Sharif declared on Tuesday the intention to privatize all state-owned enterprises (SOEs) except those deemed strategically essential. The announcement, made during a pivotal review meeting in Islamabad, signals a significant shift in the government’s approach to business management and investment facilitation.
Chairing the session focused on matters pertaining to the Ministry of Privatization and Privatization Commission, Prime Minister Sharif underscored that, irrespective of profitability, all non-strategic SOEs would undergo privatization. The meeting witnessed the presentation of a comprehensive roadmap for the Privatization Program 2024-29 by the Ministry and Commission.
“The government’s primary role is to foster a conducive environment for business and investment, not to directly engage in commercial activities,” Prime Minister Sharif reiterated, emphasizing the potential cost savings for taxpayers through SOE privatization, which could then be redirected towards enhancing public services.
The directive extended to all federal ministries, urging active collaboration with the Privatization Commission to expedite the privatization process. Notably, Prime Minister Sharif instructed the live telecast of pivotal steps in the privatization of entities such as the Pakistan International Airlines Company Limited (PIA), ensuring transparency and public scrutiny throughout the process.
Key highlights from the meeting included updates on the progress of SOE privatization, with the pre-qualification process for PIA privatization slated for completion by month-end. Additionally, the inclusion of power distribution companies in the 2024-2029 privatization program was confirmed, underscoring the government’s commitment to comprehensive economic reform.
Moreover, emphasis was placed on prioritizing the privatization of loss-making SOEs, with the appointment of a pre-qualified panel of experts tasked with expediting the process.
The high-level gathering, attended by federal ministers and relevant officials, preceded a directive from Finance Minister Muhammad Aurangzeb to submit proposals for the categorization of SOEs by May 20. This categorization, integral to a broader review of retaining commercial functions within the public sector, aims to bolster governance and financial management within SOEs.
The recent approval of 24 SOEs for the privatization program by the Cabinet Committee on Privatization further underscores the government’s commitment to structural economic reforms. The roadmap laid out during the meeting sets a bold agenda for revitalizing Pakistan’s economy through strategic privatization initiatives.
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