Pakistan’s top investment body resolves to fast-track privatization of loss-making entities

Pakistan Caretaker Prime Minister Anwaar-ul-Haq Kakar chairs the 6th meeting of the Apex Committee of Special Investment Facilitation Council in Islamabad, Pakistan on October 4, 2023. (Photo courtesy: Prime Minister's Office)

• PM Kakar chairs sixth apex committee meeting of Special Investment Facilitation Council
• Committee reviews various initiatives spearheaded by SIFC, hurdles for investment climate

ISLAMABAD: Pakistan’s top investment body said on Wednesday it had “resolved with consensus” to fast-track the privatization of state-owned enterprises (SOEs) to help reduce losses to the national exchequer.
Pakistan’s caretaker administration had earmarked 10 cash-bleeding SOEs for privatization on Sept. 21. The decision to privatize these enterprises, which includes Pakistan International Airlines, the national flag carrier, is part of fiscal discipline plans agreed with the International Monetary Fund (IMF) under a $3 billion bailout program signed earlier this year.
On Wednesday, caretaker Prime Minister Anwaar-ul-Haq Kakar chaired the sixth apex committee meeting of the Special Investment Facilitation Council (SIFC), a hybrid civil-military government body Pakistan constituted in June to attract foreign investment in key economic sectors, particularly from Gulf nations.
During its meeting, the SIFC discussed macro-economic issues affecting investment climate in the country, “including inordinate delays in restructuring/ privatization of cash bleeding State Owned Enterprises (SOEs),” the SIFC said.
As of 2020, the accumulated losses for SOEs amounted to 500 billion rupees ($1.74 billion), the finance ministry said last month.
“The committee also resolved with consensus on fast-tracking the privatization process and hence, in the larger interest of the country, reduce recurring losses to the national exchequer,” a statement from the PM office after the SIFC meeting said. 
The apex committee also expressed satisfaction over Pakistan’s ongoing negotiations with foreign and domestic investors for the timely realization of various investment prospects, it said.
Pakistan is also discussing outsourcing operations of several of its state-owned assets to outside companies.
In March, Islamabad kicked off the outsourcing of operations and land assets at three major airports to be run under a public-private partnership, a move to generate foreign exchange reserves for its ailing economy.
The government has budgeted only about 15 billion Pakistani rupees ($52.42 million) in receipts from a stalled privatization process in its budget for the fiscal year 2024.