ISLAMABAD: Pakistan Prime Minister Shehbaz Sharif on Thursday met officers from the Privatization Commission and Ministry of Privatization to debate the deliberate sale of loss-making public entities, saying additional delays within the privatization course of can’t be tolerated. mentioned.
Elected governments have up to now prevented endeavor unpopular reforms, together with promoting off firms like flag provider Pakistan International Airlines. However, in June, Pakistan, which is within the midst of a critical financial disaster, agreed to completely reform its deficit-making state-owned enterprises based mostly on a $3 billion bailout settlement with the International Monetary Fund (IMF).
In September, then-Prime Minister Anwar-ul-Haq Kakar’s caretaker authorities pledged to enhance the governance of state-owned enterprises, assigning 10 firms to privatization or restructuring efforts.
“This problem is already too far behind and there’s no room for additional delays,” Prime Minister Sharif advised officers in an announcement from his official residence. “Steps and targets needs to be introduced with clear time frames.”
He ordered the formation of a overview committee on the thought of handing over loss-making energy firms to the state authorities and mentioned its suggestions needs to be submitted on to the prime minister.
Sharif mentioned “full accountability” for the privatization course of rests with the Privatization Commission and the Ministry of Privatization.
“If there are issues, additionally it is the accountability of the ministry and the privatization committee to take away them. If there are issues with manufacturing capability and effectivity, they have to be addressed instantly,” the prime minister mentioned.
“Transparency within the privatization course of needs to be ensured on the institutional degree, and worldwide customary efficient and confirmed strategies of monitoring needs to be adopted in order that nobody can carry a finger.”
During the assembly, the Prime Minister was briefed on the privatization of PIA, Housing and Construction Finance Corporation, First Women Bank, Roosevelt Hotel, Heavy Electrical Complex, Power Plants and Distribution Companies, Pakistan Steel Corporation and different loss-making enterprises. .
“Progress has been made and obstacles have been reviewed intimately,” the PMO mentioned in an announcement.
As of June final yr, PIA had money owed of 785 billion Pakistani rupees ($2.81 billion) and accrued losses of 713 billion rupees. The firm’s CEO mentioned losses in 2023 are more likely to be Rs 112 billion.
Progress in privatization might be a key problem if the present bailout program ends this month and Sharif’s authorities returns to the IMF. Then-Finance Minister Shamshad Akhtar advised reporters final yr that Pakistan should stay within the IMF program after its expiration.
In addition to implementing operational and technical measures for the sale of PIA, the final caretaker authorities additionally amended a 2016 legislation that prohibited the sale of a majority stake, in response to a draft posted on Pakistan’s parliament web site.
In its mid-January report, the IMF expressed satisfaction with the measures initiated by the transitional authorities to speed up the reform of state-owned enterprises, and particularly talked about the amendments to the PIA privatization legislation.