Pakistan assures IMF to expedite work on privatisation programme

ISLAMABAD: The federal government has assured the International Monetary Fund (IMF) of expediting work on the privatisation programme.

According to sources in the Ministry of Finance, the federal government has prepared a plan to get rid of the electricity distribution companies through privatisation, and these companies will be handed over to the private sector.

Sources stated that ‘positive work’ is under way on the privatisation of Pakistan International Airlines (PIA).

According to the sources, currently, 25 entities/institutions are included in the active list of privatization including the PIA, and four institutions each from the financial and real estate sectors.

In addition, two enterprises from the industrial sector, 14 from the energy sector (including electricity companies), Balloki, Haveli Bahadur Shah, Gudu, Nandipur and State Life Insurance Corporation power plants being on the list of the ongoing privatisation programme.

The sources said that all 10 public-sector electricity distribution companies, House Building Finance Corporation, First Women Bank, Pakistan Engineering Company, and Sindh Engineering Limited are also included in the privatisation list.

It is noteworthy that differences have emerged between the Pakistan People’s Party and the Pakistan Muslim League (N) on the privatisation of the PIA. Rejecting the government’s decision to privatise PIA, PPP Sherry Rehman has stated that PIA can be fixed under a public-private partnership.

She said that the entity can become profitable through a public-private partnership.

It should be remembered that Finance Minister Muhammad Aurangzeb has clearly stated that the privatisation of enterprises and national institutions will unquestionably take place, with PIA being on top of the list.