5-year privatisation plan approved, employees not to be laid off
A list of potential entities will be presented during a session of the privatisation board tomorrow.
ISLAMABAD (Duny News) – The federal government has reportedly decided to privatise at least 20 state institutions in its bid to address economic depletion.
Sources close to the development said that the Privatisation Commission has approved a five-year plan to dispose of loss-making state-owned entities.
The government has delayed the privatisation of Pakistan Steel Mills and the national flag carrier (PIA), whereas SME Bank and First Woman Bank will be privatised on priority basis.
A list of entities-to-be-privatised will be presented during a session of the privatisation board scheduled for tomorrow (Wednesday).
Federal Minister for Privatisation Mian Muhammad Somroo said that government has decided against laying off employees of the state-owned entities.
Finance Minister Asad Umar had said his government would place major state-owned enterprises, including the national flag carrier, into a special fund to be managed at arm’s length from the government.
“[The] corporations will all be put in a wealth fund, which will be led by people from the private sector. We plan to transfer government owned companies under the control of the wealth fund within our first 100 days,” he added.
Umar said the fund would be used to revive loss-making or under-performing state-owned enterprises, citing the Pakistan International Airlines (PIA) as one company that needed to be restructured.
