Pakistan Economic Crisis;  PM Shehbaz Sharif  PAK Govt Entities Privatization |  Troubled Pakistan will sell all government companies: Start by selling PAK Airlines;  PM Shahbaz Sharif said- Government's job is not to do business

Pakistan Economic Crisis; PM Shehbaz Sharif PAK Govt Entities Privatization | Troubled Pakistan will sell all government companies: Start by selling PAK Airlines; PM Shahbaz Sharif said- Government’s job is not to do business

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Pakistan has announced the sale of government companies after the visit of the IMF team. (file photo)

Pakistan, which is facing economic crisis and strict conditions of IMF, has decided to sell all the government companies. Prime Minister Shahbaz Sharif announced this in the Privatization Commission meeting in Islamabad on Tuesday. He said, ‘Doing business is not the job of the government, the job of the government is to provide a good environment for business and investment in the country.’

Sharif said that all government companies will be sold, whether they are making profits or not. According to media reports, the government will retain only those companies which are strategically important.

The Prime Minister has appealed to all the ministers to cooperate with the Privatization Commission in simplifying the process. According to the December 2023 report of the Finance Ministry of Pakistan, Pakistan has 88 government companies.

PM Shehbaz Sharif meeting with the Privatization Commission of Pakistan.

PM Shehbaz Sharif meeting with the Privatization Commission of Pakistan.

Bidding of companies will take place in Pakistan, it will be shown live on TV.
Shahbaz Sharif has announced the sale of companies after the visit of the IMF advance team to Pakistan on May 12. In the meeting with IMF officials, Pakistan had demanded a big loan for a long time. Prime Minister Shahbaz Sharif has said that the process of selling companies will be completed with transparency. Last week, a list of 24 companies was made, which will be sold in the first phase of privatization.

First of all, Pakistan International Airlines Company Limited will be privatized. Bidding will take place and it will be broadcast live on TV. The program to sell companies in Pakistan has been named ‘Privatization Program 2024-2029’. Pakistan’s power companies are also included in this. First of all, those companies which are in loss will be sold. After that they will be sold to profit making government companies.

Decision taken under pressure from IMF
Pakistan has had to take many tough decisions since getting the bailout package from IMF. According to news agency Reuters, Pakistan has decided to sell all the government companies under pressure from the IMF.

Earlier last year, when Pakistan had received a package of Rs 10 thousand crore from the IMF, the Sharif government was also asked to take many tough decisions. The IMF had demanded ending all types of subsidies, making petrol, diesel and electricity expensive by 30% and increasing tax collection by 10%.

Government has already sold airports and ports
Pakistan is making every possible effort to get out of the economic crisis. In this series, not only government companies but Pakistan has even sold its ports and airports. Last year, Pakistan had decided to put Islamabad Airport on contract. Former Aviation Minister Khawaja Saad Rafiq had given this information in Parliament.

However, Saad Rafiq had said that giving on contract does not mean that the government is selling the airport, but this is being done to involve good operators in the work of the airport.

Pakistan has also sold its largest Karachi port. Last year, Pakistan had signed a concession agreement with UAE regarding its largest Karachi port. The Pakistan government finalized this deal at lightning speed in just 4 days.

This deal is for 50 years. Under this, two UAE companies will invest Rs 1.8 thousand crore in Karachi Port. It was believed that Pakistan had taken this decision to raise emergency funds. Karachi Port is one of the largest ports in South Asia. It is also the largest and busiest port of Pakistan.

This port is about 11 and a half kilometers long. There are a total of 33 berths, including 30 dry cargo and 3 liquid cargo berths. Berth means the platform where the ship is moored.

Keep an eye on the economic conditions of Pakistan…
After receiving financial assistance of Rs 9.183 thousand crore from IMF on April 30, Pakistan’s foreign exchange reserves increased to Rs 1.20 lakh crore in May. Last month (April 2024) a decline of 17.3% was recorded in the inflation rate in Pakistan.

According to data from the country’s Finance Ministry, it was the lowest in 2 years. Exactly a year ago, in May 2023, the inflation rate in Pakistan had reached 38%.

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