The government has launched a privatization process for various state-owned enterprises, supported by the Special Investment Facilitation Council (SIFC). This initiative aims to reduce the economic deficit and ensure a transparent privatization procedure.
In the first phase, the government is focusing on privatizing key institutions, including Pakistan International Airlines (PIA), Distribution Companies (DISCOs), First Women Bank, and other state-owned entities. These organizations have been a significant financial burden on the national treasury, prompting the decision to privatize them.
Government statistics reveal that PIA’s total liabilities have soared from 200 billion rupees to 830 billion rupees, while DISCOs have incurred losses exceeding 376 billion rupees.
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The government emphasizes that the privatization process will be open to all entities that meet the required standards and regulations. Drawing inspiration from past successful privatizations, such as those of Habib Bank, United Bank, and entities in the cement and telecom sectors, which have since become profitable, the current initiative seeks similar outcomes.
With the SIFC overseeing the process, transparency is expected to be maintained throughout. The government believes that reducing the financial burden on the national treasury through transparent privatization will enable greater investment in public welfare initiatives.
This privatization effort is part of the government’s broader strategy to strengthen the economy, aligning with international practices for managing state-owned enterprises.
