Privatisation of SOEs: PC to be given full legal autonomy: PM

ISLAMABAD: In a bid to accelerate the privatisation of loss-making state-owned enterprises (SOEs), Prime Minister Shahbaz Sharif pledged on Wednesday that the Privatization Commission would be granted full legal autonomy in an effort to eliminate bureaucratic red tape and extraneous interference in the country’s privatisation process.

The prime minister, while chairing a review meeting on progress of privatisation of SOEs, emphasised that reviving the country’s ailing economy depends on the timely and transparent divestment of underperforming public sector entities.

He described privatisation as a top priority for his administration, saying it must be handled “effectively, comprehensively and efficiently.”

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“Illegal occupation of valuable lands of national institutions is unacceptable under any circumstances,” he said, while urging caution in the disposal of such land. “Every possible precaution should be taken.”

The meeting focused on reviewing the progress of institutions slated for privatisation in 2024, including high-profile entities such as Pakistan International Airlines (PIA) and several power transmission companies, commonly referred to as Discos.

PM Sharif directed that the Commission’s efforts align with market conditions and adhere strictly to legal and transparency requirements. “All decisions should be implemented fully and effectively,” he said. “I will regularly monitor the progress of the ongoing work in the Privatization Commission.”

The Privatization Commission officials briefed the prime minister on a phased strategy for privatising state enterprises, structured around legal, financial, and sector-specific factors.

They noted that the plan, approved by the federal cabinet, is designed to meet both economic and institutional benchmarks within a fixed timeframe.

The prime minister also underscored the importance of consulting professional experts and maintaining international standards throughout the privatisation and restructuring process.

The push to privatise loss-making enterprises comes amid mounting fiscal pressures, with the government seeking to reduce its financial burden and attract private investment into sectors long plagued by inefficiencies and mismanagement.

The meeting was attended by federal ministers Awais Leghari and Ahad Cheema, Chairman of the Privatization Commission Muhammad Ali, along with senior government officials and advisers.

Copyright Business Recorder, 2025