Finance Minister Muhammad Aurangzeb emphasized the imperative of privatization, dismissing the notion of strategic state-owned enterprises (SOEs) during a pre-budget conference in Lahore on Sunday.
Aurangzeb’s remarks followed Deputy Prime Minister Ishaq Dar’s announcement that the government would narrow its focus to strategic and essential SOEs, reducing their current count of 40 after careful scrutiny.
Chairing the Cabinet Committee on Privatization (CCoP) meeting alongside the finance minister, Dar reiterated the priority of privatizing loss-making SOEs. The meeting acknowledged the current categorization of 40 SOEs as strategic or essential, with respective ministries set to submit details to the Cabinet Committee on State-Owned Enterprises (CCoSOE) for further evaluation.
Aurangzeb asserted, “There is no such thing as a strategic SOE,” aligning with Dar’s stance from the previous meeting. He announced plans to convene a meeting the following day to urge various ministries to transfer ownership to the private sector, emphasizing a push for public-private partnerships to accelerate the privatization agenda.
Addressing concerns about the privatization of Pakistan International Airlines (PIA), Aurangzeb clarified that the government was open to bids from both local and foreign investors, aiming to ensure a comprehensive approach.
Regarding a prospective loan program with the International Monetary Fund (IMF), Aurangzeb advocated for a larger and longer program to establish lasting macroeconomic stability and implement structural reforms.
He highlighted energy reforms, citing the need to address leakages and combat theft. Aurangzeb emphasized changes to the boards of distribution companies (Discos), advocating for increased participation from the private sector to enhance corporate governance. He hinted at future strategies involving concessions, privatization, or a hybrid approach for the Discos.
