Pakistan to Prioritize Privatization Amid Financial Strains: Key Institutions on the Line

Pakistan's government plans to prioritize privatizing multiple institutions and may shut them down if privatization fails. The move aims to alleviate financial strains, affecting companies in diverse sectors, including airlines and energy. The plan has been directed by Prime Minister Shehbaz Sharif, with several companies already identified for privatization.

The cash-strapped federal government of Pakistan will prioritize privatizing multiple institutions, with a contingency plan to shut them down if privatization efforts falter, ARY News has reported, citing sources. Prime Minister Shehbaz Sharif has mandated the Ministry of Privatization and Industry to oversee this crucial process.

Several institutions have been earmarked for privatization, including the Pakistan Stone Development Company, Pakistan Automobile Corporation, and the Pakistan Institute of Management. Also on the list are the Khadi Crafts Development Company, Agro-Food Processing Company, Leather Crafts Development Company, and Morafik Industries. Other entities set for privatization include the Southern Punjab Embroidery Industry, the Gujranwala Business Center, the Pakistan Chemical, and Energy Sector Skills Development Company, and the Spin Yarn Research and Development Company.

Privatization Commission Secretary Usman Akhtar Bajwa announced to the Senate Standing Committee on Privatization that the debt-ridden Pakistan International Airlines (PIA) privatization process will be finalized by October 1. PIA is currently burdened with a deficit of PKR 500 billion. Any buyer would have to tackle liabilities amounting to PKR 200 billion and invest an additional PKR 400 million in ship repairs and other issues. Bajwa highlighted six companies that have been shortlisted for the PIA bid, including Fly Jinnah, Air Blue, Arif Habib Corporation, YB Holdings, Pak Ethanol, and Blue World City.

Earlier on August 22, the federal cabinet approved the privatization of two departments under the Petroleum Division, as reported by ARY News. The Pakistan Mineral Development Corporation and Saindak Metals Limited (SML) are now slated for privatization. Additionally, ENAR Petrotech Services Pvt Ltd, another department under the Petroleum Division, will be dissolved. The government has yet to decide on the future of other departments, including the Pakistan State Oil (PSO), Pak-Arab Refinery Limited, and the Sui Gas Companies.

(With inputs from agencies.)