Govt unveils broader privatisation plan for state-owned enterprises

Pakistan will privatise all state-owned enterprises, with the exception of strategic entities, Prime Minister Shehbaz Sharif announced on Tuesday, broadening its initial plans to take only loss-making state firms private.

The announcement came after PM Shehbaz headed a meeting on the privatisation process of loss-making state enterprises, according to a statement from his office.

According to state-run Radio Pakistan, the premier said that the government’s job is not to do business but to ensure a business and investment friendly environment.

Additionally, he directed all federal ministries to take necessary action in this regard and cooperate with the Privatisation Commission, with the meeting being informed that “privatisation of power distribution companies has been included in privatisation programme 2024-2029”.

“It was informed that loss-making state-owned enterprises to be privatised on priority basis and that a pre-qualified panel of experts is being appointed in Privatisation Commission to speed up privatisation process,” according to Radio Pakistan.

It came a day after an International Monetary Fund (IMF) mission opened talks in Islamabad for a new long-term Extended Fund Facility (EFF) following Pakistan’s completion of a $3 billion standby arrangement last month.

Previously, Pakistan had only loss-making state-owned enterprises on its chopping block. Privatisation has long been on the IMF’s list of recommendations for Pakistan, which is struggling with a high fiscal shortfall.

“State-owned enterprises will be privatised whether they are in profit or losses,” the statement said.

Privatisation of one of the largest loss-making enterprises Pakistan International Airline is in its final stage.