Pakistan to privatise all state-owned firms, except strategic enterprises: PM Sharif

Pakistan to privatise all state-owned enterprises, including Pakistan International Airlines, to tackle financial crunch and economic stability

Cash-strapped Pakistan will privatise all state-owned enterprises, including the loss-making Pakistan International Airlines, Prime Minister Shehbaz Sharif announced on May 14, broadening the government's initial plans to make only loss-making state firms private.

The announcement to privatise state-run enterprises barring strategic ones comes a day after Pakistan started negotiations with the International Monetary Fund (IMF) for a new long-term Extended Fund Facility (EFF).

Mr. Sharif announced this while chairing a review meeting on the privatisation process of loss-making state-owned enterprises (SOEs), according to media reports.

During the meeting, he said that apart from strategic state-owned firms, all other enterprises — profitable or loss-making — will be privatised, Geo News reported.

Asserting that the government's job is not to do business but to ensure a business and investment-friendly environment, Mr. Sharif directed all ministries to take action and cooperate with the Privatisation Commission.

Underscoring the need for the privatisation process to be transparent, he ordered the privatisation process of Pakistan International Airlines (PIA) to be televised, including the bidding and other important steps. The PIA's privatisation is in its final stage, the report said.

Pakistan's ailing national flag carrier stood as the country’s third-highest public sector loss-making entity, requiring Pakistani Rs. 11.5 billion per month solely for servicing its debts.