Prime Minister Shehbaz Sharif announced Tuesday that Pakistan will privatize all state-owned enterprises except strategic entities. This expands the initial plan to privatize only loss-making state firms.
According to a statement from his office, the announcement followed a meeting led by PM Shehbaz on the privatization process of loss-making state enterprises.
He directed all federal ministries to cooperate with the Privatisation Commission and take necessary actions. The meeting was informed that “privatization of power distribution companies is included in the privatization program 2024-2029.”
Radio Pakistan also noted that loss-making state-owned enterprises will be privatized as a priority. A pre-qualified panel of experts will be appointed to speed up the privatization process.
This announcement came a day after an International Monetary Fund (IMF) mission began talks in Islamabad for a new long-term Extended Fund Facility (EFF) following Pakistan’s recent completion of a $3 billion standby arrangement.
Previously, Pakistan targeted only loss-making state-owned enterprises for privatization. The IMF has long recommended privatization for Pakistan, which faces a high fiscal deficit.
Former privatization minister Fawad Hasan Fawad told Reuters, “Any organization involved in purely commercial work can’t be strategic. There can’t be strategic commercial SOEs.”
He added, “The sooner we eliminate them, the better. But this isn’t the first time a PM has said this. These words must be translated into a strategic action plan and implemented.”
Islamabad has injected billions into loss-making SOEs for years to keep them afloat. One of the largest, Pakistan International Airline (PIA), is in its final phase of being sold. Potential buyers must express interest by the end of this week.
The government has listed 25 entities and assets for privatization, including PIA. Many are in the power sector, including four power plants and 10 generation and distribution companies.
