ISLAMABAD: Deputy Prime Minister Ishaq Dar this week directed authorities to fast-track the privatization process for state-owned enterprises (SEOs), including the Pakistan International Airlines (PIA), state-run media reported.
Pakistan’s privatization chief Muhammad Ali announced earlier this month that the government aims to privatize national flag carrier Pakistan International Airlines (PIA) by October this year. Pakistan’s government has been attempting to privatize the debt-ridden PIA to raise funds and reform state-owned enterprises as envisaged under a $7 billion International Monetary Fund (IMF) program secured last year.
Late last year, however, a deal fell through after a potential buyer reportedly offered $36 million for a 60 percent stake in the national flag carrier, a fraction of the asking price of approximately $303 million.
“Deputy Prime Minister and Foreign Minister Ishaq Dar has directed the Ministry of Privatization and the Privatization Commission to fast-track the privatization process,” state broadcaster Radio Pakistan reported on Saturday.
It said Dar chaired an inter-ministerial meeting in Islamabad on Saturday to review progress on the government’s privatization agenda.
The deputy premier instructed relevant ministries to extend “full support” in the privatization process, stressing the objective is to place SOEs on a “sustainable and profitable trajectory.”
“The meeting was briefed on ongoing steps and processes related to the privatization of major public sector entities, including PIA,” the state broadcaster reported.
The IMF has recommended Pakistan privatize its loss-making SOEs as it struggles with a high fiscal shortfall and a huge external financing gap.
The IMF says SOEs in Pakistan hold sizable assets in comparison with most Middle East countries, at 44 percent of GDP in 2019, yet their share of employment in the economy is relatively low. It estimates almost half of the SOEs operated at a loss in 2019.
