The federal government of Pakistan has announced its intention to privatise several state-owned enterprises (SOEs) under a new rightsizing policy. Prime Minister Shehbaz Sharif has directed the Ministry of Privatisation and the Ministry of Industries and Production to execute this plan, which aims to streamline government operations and reduce expenditures.
According to sources, the Ministry of Industries and Production has earmarked several entities for privatisation, including the Pakistan Stone Development Company and the Pakistan Automobile Corporation. Additionally, proposals are in place to privatise the Pakistan Institute of Management, Khadi Crafts Development Company, Agro Food Processing Facilities, Leather Crafts Development Company, Morafco Industries, Southern Punjab Embroidery Industry, and Gujranwala Business Centre. Further plans involve the Pakistan Chemical and Energy Sector Skill Development Company and Spin Yarn Research and Development Company.
The federal government’s primary focus is on privatising these entities. However, if privatisation proves unfeasible, the alternative would be to liquidate these departments. This approach is part of a broader strategy to reduce the size and expenses of the federal government, which includes closing and merging departments as necessary.
To oversee these efforts, Prime Minister Shehbaz Sharif has established a high-powered Right-Sizing Committee, chaired by Finance Minister Muhammad Aurangzeb. This committee is responsible for evaluating and implementing measures to optimise government operations, ensuring that the proposed privatisation and potential liquidation are conducted efficiently and effectively.
The move to privatise SOEs is seen as a crucial step in addressing financial inefficiencies and reducing the fiscal burden on the government. By transferring ownership of these entities to the private sector, the government aims to enhance operational efficiency, improve service delivery, and stimulate economic growth through increased private sector participation.
Privatisation efforts have often been met with resistance due to concerns about job losses, service quality, and potential monopolies. To mitigate these concerns, the government plans to implement a transparent and fair process, ensuring that the privatisation is conducted in a manner that safeguards the interests of employees and the public.
The Pakistani government is embarking on a significant privatisation initiative under the rightsizing policy, targeting several state-owned enterprises to reduce governmental size and expenses. The success of this initiative will depend on the effective implementation of the privatisation plan and the ability to address potential challenges and concerns associated with the transfer of ownership to the private sector.
