The Privatisation Commission of Pakistan is reportedly devising a comprehensive three-phased privatisation strategy for State Owned Entities (SOEs), exempting those considered of national or strategic importance, according to official sources.
This initiative, directed by Prime Minister Shehbaz Sharif during a presentation on March 7, 2024, aims to implement a robust privatisation programme over the next five years, spanning from 2024 to 2029.
Under the directives of the Prime Minister, the programme is to be formulated in collaboration with relevant Ministries and Divisions, adhering to the guidelines outlined in section 5(b) of the Privatisation Commission Ordinance, 2000.
This section mandates the Commission to prepare a privatisation programme for Cabinet approval.
The privatisation list prioritises entities such as Pakistan International Airlines (PIA) and Power Distribution Companies (Discos), focusing initially on loss-making SOEs.
The strategy outlines a phased approach: the first phase within one year, the second phase spanning one to three years, and the third phase extending from three to five years.
The objective is to diminish the federal government’s involvement in the commercial sector, especially in profitable SOEs, to streamline economic participation and address the pressing issues that may impede the privatisation process.
Prime Minister Sharif has also instructed that the Finance Division’s report titled “federal footprint- State Owned Enterprises” from December 2023 be reviewed to identify suitable candidates for privatisation.
This report is a critical resource in determining the future of SOEs in Pakistan’s economy.
The Privatisation Commission has urged Ministries and Divisions to identify which commercial SOEs will enter the privatisation programme, delineate those of strategic importance that will not be privatised, and outline potential challenges and solutions in the privatisation process.
This strategic move is part of the government’s broader efforts to reduce its footprint in the commercial sector, aiming to enhance efficiency and promote a more dynamic economic landscape in Pakistan.
