At a recent pre-budget conference in Lahore, Finance Minister Muhammad Aurangzeb confidently stated that there are no “strategic” state-owned enterprises (SOEs), reaffirming the government’s commitment to privatisation. This declaration follows Deputy Prime Minister Ishaq Dar’s announcement that the government intends to restrict its involvement to essential SOEs, with plans to reduce their current number of 40 after careful evaluation.
During a meeting of the Cabinet Committee on Privatisation (CCoP), chaired by Dar and attended by the finance minister, it was reasserted that the privatisation of unprofitable SOEs would be prioritised. The meeting underscored that while 40 SOEs are presently classified as strategic or essential, the respective ministries will be required to furnish detailed information to the Cabinet Committee on State-Owned Enterprises (CCoSOE) for a determination of the status of each SOE.
In his address at the pre-budget conference, Aurangzeb reiterated that “There is no such thing as [a] strategic SOE.” He also expressed agreement with Dar’s position, stating, “We are absolutely on the same wavelength — that there is no such thing as a strategic SOE.”
Looking ahead, the finance minister announced plans for an upcoming meeting, where various ministries will be encouraged to transfer their SOEs to the private sector, promoting public-private partnerships and advancing the privatisation agenda.
In addressing concerns about the privatisation of Pakistan International Airlines (PIA), Aurangzeb emphasized that the government is open to both local and foreign investors, dispelling the misconception that only foreign investors are being considered for the venture.
In light of discussions about a potential loan programme with the International Monetary Fund (IMF), Aurangzeb emphasized the need for a comprehensive, long-term programme to establish lasting macroeconomic stability and implement essential structural reforms.
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