As the government led by Prime Minister Shehbaz Sharif seeks to tackle economic challenges, Finance Minister Muhammad Aurangzeb announced plans to privatize Pakistan International Airlines (PIA) by the end of this year. Speaking to a private channel, he emphasized that the government aims to privatize PIA alongside three power distribution companies (Discos) before the close of 2024.
Aurangzeb's remarks follow the recent postponement of PIA's privatization deadline from October 1 to October 31, attributed to factors such as low bidder interest, ongoing court cases, an aging fleet, and issues in civil aviation.
Sources revealed that the government intends to privatize additional state-owned enterprises (SOEs) as part of a rightsizing strategy, with PM Shehbaz instructing the Ministry of Privatization and the Ministry of Industries and Production to expedite the process. Among the SOEs slated for privatization are the Pakistan Stone Development Company and the Pakistan Automobile Corporation. Proposals are also being finalized for the privatization of the Pakistan Institute of Management, Khadi Crafts Development Company, Agro Food Processing Facilities, Leather Crafts Development Company, Morafco Industries, Southern Punjab Embroidery Industry, and the Gujranwala Business Centre.
Notably, Aurangzeb chairs a high-powered Right-Sizing Committee established by the prime minister. He detailed that the outsourcing of Islamabad and Karachi airports would occur in phases and indicated that rightsizing and restructuring of certain ministries and departments would be completed before the next fiscal year.
On addressing power sector issues, the minister mentioned ongoing discussions with Chinese authorities regarding debt re-profiling, along with initiatives related to China Pakistan Economic Corridor (CPEC) projects. He reiterated the government's commitment to privatizing underperforming units, reforming the power sector, and taking all necessary steps to bolster the country’s economic framework.