The Privatization Commission has formulated a five-year program to privatise all government-owned commercial entities, which will be presented to the Cabinet’s Privatization Committee.
The International Monetary Fund’s (IMF) call for a comprehensive privatization roadmap for all state-owned enterprises. The Commission has advised prioritizing the privatization of unprofitable government commercial companies. Of the 87 public sector commercial companies, 39 have been recommended by various federal ministries to remain under government ownership, with the new law stipulating that only the Ministry of Finance may classify a company as strategic.
The Privatization Commission has also outlined measures to safeguard employee rights during privatization. A proposal for offering a golden handshake to affected employees is under consideration, with the final decision on such packages to be made by the Privatization Committee.
The Securities and Exchange Commission of Pakistan (SECP) recently approved a restructuring plan for Pakistan International Airlines (PIA). The Privatization Commission confirmed that the arrangement for PIA’s privatization received approval on May 3, and relevant notifications have been issued to the stock market.
Additionally, all assets have been transferred to the newly established PIA Holding Company as part of the restructuring plan. This legal advancement in privatization has been officially communicated to the Ministry of Finance and Privatization.
The scheme, supported by the Ministry of Finance and Aviation, has been duly notified to key financial institutions, including the Pakistan Stock Exchange, the Central Depository Company, and the National Clearing Company.
