The government of Pakistan has finalized 84 of the 212 public sector companies for final privatization, liquidity or retention in the public sector to meet the structural benchmark of the International Monetary Fund (IMF) program.
In a report released on Thursday, the Ministry of Finance said a total of 25 SOEs which together earned a cumulative profitability of Rs107bn in 2018-19 would be retained by the government.
Another 14 companies are retained in the public sector and would be restructured while 10 other companies were already under the privatisation programme and yet another 24 companies would be privatised in the next phase between 2023 and 2024. There are about 10 other companies which have been described as potential candidates for privatisation while one entity — Industrial Development Bank Ltd — is currently under liquidation.
Over the past six years, one-third of commercial SOEs have suffered intermittent losses, the report said.
In addition, the amount of losses of the top 10 loss-making SOEs contributes about 90% of the total losses of the SOEs portfolio each year.
The National Highway Authority, Pakistan Railways, PIA and power sector distribution companies (DISCOs) are among the 10 major loss-making SOEs.
ISLAMABAD: The government has finalised a triage of 84 out of a total of 212 public sector companies for their ultimate privatisation, liquidation or retention in the public sector to meet a structural benchmark of the International Monetary Fund (IMF) programme.
