The Asian Development Bank has finalised a technical assistance of $20 million to Pakistan for a public sector enterprise (PSE) reform project targeting reduction of fiscal and economic cost of privatisation to consumers and employees.
According to official sources, the project will maximise benefits of improved governance in corporate and public sector enterprises. It will improve access to basic services, such as electricity.
The PSEs, to be restructured and privatised, will develop a framework to address labour issues in consultation with unions.
The poor will be protected by potential increase in tariffs, if subsidies are retargeted at low-income households. The customer surveys, to be financed by the project, will monitor service delivery and tariff structures of PSEs.
The project will strengthen government’s capacity for privatisation and improving corporate governance in selected PSEs; and enhancing governance and regulatory regimes in selected sectors currently dominated by PSEs.
The finance ministry will execute the project which will be implemented from April 2015 to December 2019.
