During a pre-budget conference in Lahore, Finance Minister Muhammad Aurangzeb stated on Sunday that the concept of strategic state-owned enterprises (SOEs) was baseless, highlighting the necessity for privatization.
The announcement comes two days after Deputy Prime Minister Ishaq Dar outlined the government’s plan to retain only essential SOEs, reducing their total number from 40 after careful evaluation.
At the Cabinet Committee on Privatization (CCoP) meeting, which Dar chaired and Aurangzeb attended, it was declared that privatizing loss-incurring SOEs would be a top priority. Currently, 40 SOEs are deemed strategic or essential, but further assessments are to be conducted by the Cabinet Committee on State-Owned Enterprises (CCoSOE) to finalize this classification.
Further elaborating on Friday’s meeting, Aurangzeb remarked, “We are completely aligned in the viewpoint that there are no strategic SOEs.” He added that an upcoming meeting would push for transferring responsibilities to the private sector, emphasizing public-private partnerships and a hastened privatization agenda.
Addressing the concerns about privatizing Pakistan International Airlines (PIA),
Aurangzeb reassured that the government was considering bids from both local and international investors, not just foreign entities.
Additionally, he mentioned discussions on a new, extensive program with the International Monetary Fund (IMF) aimed at achieving sustained macroeconomic stability and structural reforms.
Aurangzeb also highlighted ongoing energy reforms, particularly the efforts to curb losses and theft. Changes are underway in the boards of distribution companies (Discos) to include private sector professionals to ensure better corporate governance, leading toward either privatization or a mix of concessions and privatization, he concluded.
