Finance Minister Aurangzeb refutes existence of strategic state-owned enterprises in Business sector

Finance Minister Muhammad Aurangzeb emphasized the need for privatisation of state-owned enterprises (SOEs) during a pre-budget conference in Lahore. He dismissed the concept of “strategic” SOEs, stating that all entities should be handed over to the private sector.

Deputy Prime Minister Ishaq Dar had previously mentioned that the government would limit its involvement to strategic and essential SOEs, reducing their number from 40 after scrutiny. The Cabinet Committee on Privatisation (CCoP) meeting chaired by Dar highlighted the priority of privatising loss-making SOEs.

Aurangzeb announced plans for public-private partnerships to accelerate the privatisation agenda. He addressed concerns about the privatisation of Pakistan International Airlines (PIA), stating that both local and foreign investors were being considered for bids.

In addition, Aurangzeb discussed the need for a larger and longer loan programme with the International Monetary Fund (IMF) to ensure macroeconomic stability and structural reforms. He also emphasized energy reforms, focusing on reducing leakages and stopping theft in distribution companies (Discos). Changes to the boards of Discos were mentioned to improve corporate governance, with potential options for concessions, privatisation, or a combination of both.

The finance minister’s remarks indicate a strong push towards privatisation and reforms in various sectors to enhance economic stability and efficiency. The government’s commitment to involving both local and foreign investors in the process reflects a comprehensive approach to revitalizing the economy.