ISLAMABAD: Information Minister Murtaza Solangi has announced that the interim government in Pakistan has received the authorization to initiate the privatization of state-owned enterprises and power distribution companies as a crucial step in their mission to revitalize the country’s struggling economy. He made this announcement during a press conference following a meeting of Pakistan’s Special Investment Facilitation Council (SIFC) in Islamabad.
In response to a query about the caretaker government’s ability to implement policy interventions for privatization, Solangi asserted, “We can do this, and our legal opinion is the same, and we will do it.” He cited previous amendments to the Election Act 2017, which were passed by the previous Parliament, granting the caretaker government the authority to make decisions regarding existing bilateral or multilateral agreements and projects.
The SIFC meeting aimed to focus on improving Pakistan’s overall business and investment environment, which is crucial for the country’s economic revival. Caretaker Prime Minister Anwaarul Haq Kakar chaired the meeting, and high-ranking officials, including Chief of Army Staff General Asim Munir, members of the federal cabinet, and provincial chief ministers, attended it.
During the meeting, the committee discussed various short-term, medium-term, and long-term measures aimed at achieving positive outcomes. The committee approved practical steps to implement as soon as possible.
Caretaker Prime Minister Kakar emphasized the need for ministries to deliver optimal results, regardless of the limited time available to the interim government. He also highlighted the importance of laying a strong foundation for the future government.
The meeting’s agenda included discussions on boosting investment in sectors such as information technology, mining, and agriculture. Additionally, the forum addressed issues related to government expenditure reduction, the circular debt, privatization schedules for state-owned enterprises that are not beneficial, and efforts to combat the smuggling of food items, petroleum, and foreign exchange.
Finance Minister says Country’s economic Situation ‘reasonably okay’
Caretaker Finance Minister Shamshad Akhtar stated that the interim government intends to roll over deposits from other countries upon their maturity as part of its efforts to manage foreign exchange reserves and revive the economy. She emphasized the importance of timely inflows and discussions with multilateral development banks. Akhtar described the current economic situation as “reasonably okay” for now.
In response to concerns about the shortage of dollars in the country, Akhtar noted that the situation was not “unusual” due to the need to open up imports for industrial revival, declining exports, and a shortfall in remittances. She mentioned ongoing discussions with organizations such as the World Bank and the Asian Development Bank to fast-track processes and inflows.
Caretaker Commerce Minister Gohar Ejaz attributed inflation to supply chain shortages that occurred after the government imposed import restrictions to reduce the high import bill. He emphasized the need to boost exports and create employment opportunities, stating that increasing exports could help manage inflation effectively.
Ejaz also mentioned the issue of sugar shortages and called for measures to control smuggling. Additionally, interim Power Minister Muhammad Ali called for increased production of fuel supplies, including gas and oil, to meet domestic needs. He highlighted the importance of focusing on gas and oil exploration to reduce the import bill and improve supply. Ali noted that pricing and circular debt were among the reasons foreign companies left Pakistan’s gas exploration sector, in addition to security clearance issues. The government plans to open bids for onshore and offshore exploration blocks in the coming months.
