No such thing as strategic SOEs, says Aurangzeb after Dar uses term in CCoP

LAHORE: Finance Minister Muhammad Aurangzeb stated on Sunday that there are no strategic state-owned enterprises (SOEs). He made these remarks while speaking on the necessity of privatisation, said a report by Dawn news on Sunday.

His comments came during a pre-budget conference in Lahore, following Deputy Prime Minister Ishaq Dar’s announcement that the government would limit its involvement to ‘strategic’ and ‘essential’ SOEs, reducing their number from 40 after careful review.

IMF approves central bank’s decision to keep policy rate unchanged

Chairing the Cabinet Committee on Privatisation (CCoP) meeting, attended by Aurangzeb, Dar prioritised the privatisation of loss-making SOEs. It was highlighted during the meeting that while 40 SOEs were currently designated as strategic or essential, respective ministries would furnish details to the Cabinet Committee on State-Owned Enterprises (CCoSOE), which would determine their status.

FM Aurangzeb also clarified that he and the deputy prime minister agree on there being no such thing as a strategic SOE. He said, “We are absolutely on the same wavelength that there is no such thing as a strategic SOE.” Aurangzeb announced plans for a forthcoming meeting where ministries would be instructed to transition assets to the private sector, accelerating the privatisation agenda through public-private partnerships.

Addressing concerns regarding the privatisation of Pakistan International Airlines (PIA), Aurangzeb clarified that the government was considering bids from both local and foreign investors. He underscored the broader goal of pursuing a larger and longer-term IMF programme to establish permanence in macroeconomic stability and structural reforms.

Government assures IMF of PIA privatisation “by June” this year

Aurangzeb also discussed energy reforms, highlighting the need to address leakages and theft. He outlined plans to revamp the boards of distribution companies (DISCOs) by incorporating private sector professionals for improved corporate governance. He outlined the government’s strategic approach that includes emphasis on a combination of concessions or privatisation for DISCOs.