ISLAMABAD: Prime Minister Shehbaz Sharif described the privatization of state-owned enterprises (SOEs) as his administration's top priority on Tuesday, as he discussed the sale of loss-making power distribution companies after the government successfully divested a 75 percent stake in Pakistan International Airlines (PIA) in December.
The push to privatize power utilities follows the government’s efforts to restructure and offload state firms under broader economic reforms recommended by the International Monetary Fund (IMF) under a $7 billion loan program with Pakistan.
The IMF has repeatedly urged Islamabad to reduce fiscal losses by privatizing or restructuring chronically loss-making SOEs.
“Privatization of loss-making state-owned enterprises is among the government’s top priorities,” the prime minister said, according to a statement released by his office after a meeting on privatization. “The successful privatization of 75 percent shares of PIA is the first drop of rain.”
Last month, a consortium led by the Arif Habib Group won the bid for a 75 percent controlling stake in the national flag carrier, offering Rs 135 billion ($482 million) in a transaction the government described as a milestone in its privatization drive.
