Finance Minister Muhammad Aurangzeb on Monday said the government plans to speed up the privatisation of state owned enterprises, with more firms set to move under private management in the coming months.
He said the prime minister has given clear instructions to move the process forward with both transparency and pace. According to the minister, the recent progress in the national carrier’s privatisation has created fresh momentum, encouraging the government to expand the programme further.
Aurangzeb said the government will not stop at the previously identified 26 state enterprises. More institutions will gradually be handed over to the Privatisation Commission as part of a broader reform effort.
Losses decline but challenges remain
While presenting details about the performance and financial health of state owned enterprises, the minister said several loss making institutions have already been shut down or are in the process of closure. He added that these decisions were taken in a transparent way.
He said many of these entities were receiving billions of rupees in subsidies while also facing issues such as theft, leakage and corruption. A few more institutions remain under review as the government considers further rightsizing of the federal structure.
Aurangzeb said overall losses of state institutions have been falling for three straight years. Aggregate losses stood at Rs905 billion in 2023, declined to Rs851 billion in the following fiscal year and reached Rs832 billion last year. This shows a reduction of Rs74 billion over the period.
Despite the overall losses, he noted that some sectors, particularly oil and gas, continue to remain profitable. However, their profits have dropped due to lower global oil prices, even though operational performance has improved.
The minister also highlighted the balance between government spending on these firms and the returns they generate. He said the outflow from state enterprises last year was about Rs2.078 trillion, while the inflow through dividends, taxes and mark up reached Rs2.119 trillion, creating a positive balance of around Rs40 billion for the government.
Key privatisation steps underway
Aurangzeb said the national airline’s privatisation was completed in a transparent manner and management control is expected to shift to private sponsors in April. He added that the privatisation of Zarai Taraqiati Bank is at an advanced stage and will soon be placed before the Cabinet Committee on Privatisation. The Housing Building Finance Corporation is also under active review.
He said the government is also working to improve governance in state institutions, with the prime minister personally overseeing the reform process alongside the cabinet.
Looking ahead, the minister said the prime minister is expected to announce a relief package for the construction sector soon. The government is also considering lower tax rates for the property sector and plans to introduce a support package for the textile industry within the next ten to twelve days.
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