https://arab.news/grbkk
- Pakistan this month reached an agreement with the International Monetary Fund for a new $7 billion loan
- Under the last deal, the lender had said loss-making Pakistani state entities needed stronger governance
ISLAMABAD: Pakistan’s Cabinet Committee on Privatization (CCOP) has approved 24 entities for the Privatization Program 2024-29 and decided that the inclusion of other state-owned entities (SOEs) will be made upon completion of a review about their categorization as strategic or essential enterprises, Pakistani state media reported on Friday.
Pakistan, which has been facing low foreign exchange reserves, currency devaluation and high inflation, this month reached a staff-level agreement with the International Monetary Fund (IMF) for a new $7 billion loan.
Under the last $3 billion bailout package from the IMF that was critical in averting a sovereign debt default last year, the lender had said SOEs whose losses were burning a hole in government finances needed stronger governance.
On Friday, officials presented the CCOP with the five-year, phased privatization program by the Ministry of Privatization, and the committee considered 84 SOEs fr privatization after deliberating on the policy guidelines.
“The CCOP recommended that priority should be accorded to reducing the federal footprint in commercial space and limiting it to the strategic and essential SOEs only,” the state-run APP news agency reported. “CCOP emphasized that even SOEs making profits would also be considered for privatization.”
Among the main entities Pakistan is pushing to privatize is its national flag carrier, the Pakistan International Airlines (PIA). The government is putting on the block a stake ranging from 51 percent to 100 percent.
The CCOP decided that the entities not categorized as “strategic” or “essential” would be placed before it for a decision regarding their inclusion in the privatization program, according to the report.
In his concluding remarks, Deputy Prime Minister Ishaq Dar reaffirmed the government’s commitment to implementing the privatization program with “transparency, efficiency and whole-of-government approach,” stressing the importance of support and cooperation from all stakeholders.