As the Shehbaz Sharif-led government navigates Pakistan’s economic challenges, Finance Minister Muhammad Aurangzeb announced a pivotal move to privatize Pakistan International Airlines (PIA) by the end of 2024.
This decision is part of a broader strategy to enhance the nation’s financial health and streamline state-owned enterprises.
In an interview with a private news channel, Aurangzeb confirmed that the government aims to finalize the privatization of PIA alongside three power distribution companies (Discos) before the year concludes.
This announcement follows a delay in PIA’s privatization timeline, which was postponed until October 31 due to various factors, including low bidder interest, ongoing court cases, and aging fleet issues.
Last week, reports indicated that the government plans to privatize additional state-owned enterprises (SOEs) as part of its rightsizing policy.
Prime Minister Shehbaz Sharif has directed the Ministry of Privatization and the Ministry of Industries and Production to implement these plans effectively.
Among the entities marked for privatization are the Pakistan Stone Development Company and the Pakistan Automobile Corporation.
Furthermore, proposals for the privatization of other enterprises, including the Pakistan Institute of Management, Khadi Crafts Development Company, Agro Food Processing Facilities, Leather Crafts Development Company, Morafco Industries, Southern Punjab Embroidery Industry, and Gujranwala Business Centre, have been finalized.
Minister Aurangzeb also chairs a high-powered Right-Sizing Committee established by the Prime Minister to oversee these reforms.
He elaborated that the outsourcing of Islamabad and Karachi airports will be executed in phases, indicating a comprehensive approach to the privatization process. Rightsizing and restructuring of specific ministries and departments are also slated for completion before the next fiscal year.
Addressing the power sector’s challenges, the Finance Minister revealed ongoing discussions with Chinese authorities regarding debt re-profiling and projects related to the China-Pakistan Economic Corridor (CPEC).
He underscored the government’s commitment to reforming sick units within the power sector, stating that all necessary measures are being taken to strengthen the economic landscape of Pakistan.
