In a significant address at a pre-budget conference held in Lahore, Finance Minister Muhammad Aurangzeb unequivocally stated that there are no entities classified as “strategic” state-owned enterprises (SOEs), underlining the urgent necessity for privatization initiatives.
Aurangzeb’s remarks come in the wake of Deputy Prime Minister Ishaq Dar’s recent declaration that the government would confine its operational scope solely to SOEs deemed strategic and essential. Dar further announced plans to trim down the current tally of 40 SOEs following a comprehensive review.
At a session presided over by Aurangzeb himself, the Cabinet Committee on Privatization (CCoP) convened to discuss strategies for divesting loss-making SOEs, highlighting the government’s commitment to prioritize this agenda.
During the meeting, it was disclosed that 40 SOEs are presently identified as strategic or essential. However, respective ministries have been tasked with furnishing detailed reports to the Cabinet Committee on State-Owned Enterprises (CCoSOE). Subsequently, the CCoSOE will assess and determine the status of SOEs eligible for classification as strategic or essential entities.
FINANCE MINISTER AURANGZEB DELIVERED A DECISIVE MESSAGE
Finance Minister Aurangzeb delivered a decisive message on Sunday, asserting, “There is no such thing as a strategic SOE.” Reflecting on a recent meeting chaired by Deputy Prime Minister Dar, he reiterated alignment on this stance, stating, “We are absolutely on the same wavelength.”
Looking forward, Aurangzeb disclosed plans for an imminent meeting aimed at directing ministries to transition designated entities to the private sector. “There will be public-private partnership, and we will accelerate the privatization agenda,” he affirmed.
Addressing concerns surrounding the privatization of Pakistan International Airlines (PIA), Aurangzeb assured a diverse investor pool, emphasizing bids from both local and foreign entities. “There is no such thing that we are only looking at foreign investors,” he clarified.
Regarding a potential IMF loan program, Aurangzeb advocated for a comprehensive, longer-term initiative to instill “permanence in macroeconomic stability and structural reforms.”
Turning attention to energy reforms, Aurangzeb highlighted the imperative of combating leakages and theft, particularly within distribution companies (Discos). He underscored forthcoming changes to Discos’ boards, aimed at integrating private sector expertise for enhanced corporate governance.
