The government has initiated a privatization process for various state-owned enterprises with the support of the Special Investment Facilitation Council (SIFC). This move aims to reduce the economic deficit and ensure transparency in the privatization procedure.
In the first phase, the government is focusing on privatizing several key institutions, including Pakistan International Airlines (PIA), Distribution Companies (DISCOs), First Women Bank, and other state-owned entities. The decision comes as these organizations continue to burden the national exchequer with significant losses.
According to government statistics, PIA's total liabilities have increased from 200 billion rupees to 830 billion rupees. Additionally, DISCOs have incurred losses exceeding 376 billion rupees.
#SIFC is driving transparency in privatizing state-owned enterprises like #PIA, #DISCOs, and First Women's Bank to curb financial deficits.
— SAMAA TV (@SAMAATV) September 2, 2024
With a focus on international standards, this initiative aims to strengthen #economy & boost public welfare. #SamaaTV pic.twitter.com/o3OR6tIXCV
The government emphasizes that the privatization process will be open to all entities meeting the required standards and regulations. This approach is inspired by past successful privatizations, such as Habib Bank, United Bank, and entities in the cement and telecom sectors, which have become profitable after privatization.
The SIFC's involvement is expected to ensure transparency throughout the privatization process. The government believes that reducing the financial burden on the national treasury through transparent privatization allows for increased investment in public welfare initiatives.
This privatization initiative is part of the government's broader strategy to strengthen the economy and aligns with international practices for managing state-owned enterprises.
