In Islamabad, the International Monetary Fund (IMF) has urged the interim government to adhere to the conditions outlined in the standby program. These conditions encompass cost-cutting measures, the privatization of various institutions, and the transfer of 203 state-owned enterprises from various ministries to the Ministry of Finance.
Express News reports that the caretaker government’s trial period has commenced, marked by the IMF’s requirements, which include reducing expenditures and expediting the privatization of institutions. As per the terms of the $3 billion standby agreement, the IMF stipulates that 203 government-owned companies should fall under the administrative oversight of the Ministry of Finance for the current fiscal year.
Sources within the Ministry of Finance reveal that the IMF’s standpoint is that managing these companies through line ministries hampers their potential for improvement, especially when profitable companies are incurring significant losses.
Furthermore, the IMF’s objectives encompass the privatization of entities such as Pakistan International Airlines (PIA), steel mills, RLNG (Regasified Liquefied Natural Gas) power plants, and DISCOs (Distribution Companies) within the ongoing fiscal year.
During a Cabinet meeting, a decision was made to establish a committee to facilitate the privatization of PIA. The Privatization Committee of the Cabinet, chaired by the Caretaker Finance Minister Shamshad Akhtar, endorsed the formation of a technical committee to address impediments related to PIA’s privatization and restructuring. The Ministry of Aviation was instructed to present a comprehensive action plan with a defined timeline in collaboration with the Privatization Commission.
Additionally, the meeting disclosed the establishment of a committee tasked with devising a viable plan to involve the private sector in DISCOs’ management. This committee, led by the Caretaker Energy Minister and comprising the Secretary of the Privatization Commission, Special Secretary of Finance, and a representative from NEPRA (National Electric Power Regulatory Authority), will oversee this initiative.
