Pakistan's Prime Minister Shehbaz Sharif made a significant announcement declaring the country's intention to privatize all state-owned enterprises, except for those considered strategic. This decision marks a departure from Pakistan's previous strategy, which solely focused on privatizing loss-making state-owned firms, showing a broader scope in the country's privatization efforts.
The announcement came following a meeting led by Prime Minister Sharif on the process of privatizing loss-making state enterprises, as stated by his office. This change in direction regarding privatization arrives amidst ongoing discussions with an International Monetary Fund (IMF) mission in Islamabad for a new long-term Extended Fund Facility (EFF). Pakistan recently completed a $3 billion standby arrangement, setting the stage for these new talks with the IMF.
Previously, Pakistan's privatization focus was primarily on addressing its fiscal shortfall by targeting only loss-making state-owned enterprises. The IMF has persistently recommended privatization as a way for Pakistan to navigate its economic challenges. The statement from the Prime Minister's office confirmed the shift in strategy by stating that state-owned enterprises, regardless of their financial status, will be subject to privatization measures. As a significant step forward, the privatization of Pakistan International Airlines, one of the largest loss-making enterprises, is reportedly nearing completion, showcasing tangible progress in the privatization process.