Pakistan to expedite privatization of 32 state-owned enterprises

Federal Minister for Privatization Mohammad Mian Soomro along with other officials is spelling out the privatization program here in Karachi on September 13, 2019. (AN photo)
Updated 13 September 2019
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Pakistan to expedite privatization of 32 state-owned enterprises

  • Privatization minister says the bidding process is likely to begin by the end of the year
  • Pakistan has completed 173 privatization transactions worth Rs 650 billion since 1991

KARACHI: Pakistan has decided to expedite the privatization process of 32 state-owned enterprises (SoEs), including the Oil and Gas Development Company and Pakistan Petroleum Limited, to retire public debts, said Federal Minister for Privatization Mohammad Mian Soomro on Friday.

He added that the government hoped to open the bidding process by the end of the year.

“The privatization process has been activated once again. Certainly, we will face challenges but the response so far is encouraging,” Soomro told journalists at a meetup session in Karachi. “The privatization of SoEs will help reduce debt and lead to poverty alleviation.”

The minister also expressed hope that the privatization process would lead to greater investment in the country. “The economic condition of Pakistan is now improving as the trade deficit is reducing and exports are increasing,” he added.

Earlier, the government had added the country’s steel mill and national flag career, Pakistan International Airline (PIA), to the privatization list, though later these were removed from the process. “We want to revive the national assets on a priority basis,” Soomro explained.

He was confident the country would be able to “open the biding process for power plants by the end of the year.”

Secretary Privatization Rizwan Malik informed that the government had narrowed down the list of SoEs for privatization from 65 to 41, adding that 8 entities had been selected under active privatization program in a phased manner. “In the second phase, 17 companies would opt for the privatization process since the government gives prime importance to the economic reforms agenda and the current privatization program is its vital component,” he maintained.

He added that the privatization process was strictly in accordance with the privatization law and the Pakistan Procurement Regulatory Authority (PPRA) rules to ensure transparency in all transactions. “The sales proceeds are utilized for government’s debt reduction and poverty alleviation in Pakistan. It is expected that a substantial amount of sales proceeds will be received as a result of transparent and fair privatization process,” Malik said.

Pakistan’s privatization of lossmaking SoEs started in 1991 and invited criticism from various political parties. Between January 1991 and September 2015, the government completed 173 transactions for Rs 650 billion that included the sale of companies from power, oil and gas, transportation, telecommunications, banking and insurance sectors.

According to the Privatization Commission, about 66 percent of the amount was transferred to the federal government, 28 percent was returned to legal entities whose shares were sold, four percent was used for restructuring expenses associated largely with golden handshakes and rehabilitation, and two percent was used on privatization-related expenditures.

The present political administration of the country hopes that the privatization will bring investment in the country as well as modernize the privatized entities.  The investors induct capital, install state-of-the-art technologies and implement best governance practices in the privatized entities.


Shaheen Shah Afridi quells team discord rumors, says Pakistan eyeing T20 World Cup victory

Updated 17 May 2024
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Shaheen Shah Afridi quells team discord rumors, says Pakistan eyeing T20 World Cup victory

  • Afridi briefly served as Pakistan’s T20I captain following the team’s underperformance in last year’s ODI World Cup
  • The leadership change at the helm followed contentious statements, triggering debate about solidarity within the team

ISLAMABAD: Pakistani speedster Shaheen Shah Afridi on Friday dismissed concerns about unity within the national cricket team ahead of the Twenty20 World Cup, saying there was no discord within the squad where every player was focusing on winning the big tournament next month.

Afridi was appointed as the T20I captain after Babar Azam announced his decision to step down following the team’s underperformance in last year’s Asia Cup, hosted by Pakistan and Sri Lanka, as well as the ODI World Cup played in India. However, his tenure was brief and ended in March 2024, following Pakistan’s 4-1 defeat in the T20I series against New Zealand.

Azam was brought back to lead the national team, but the leadership change was surrounded by contentious statements that triggered a debate about the lack of solidarity within the team.

“If there are ever small misunderstandings, these happen in every family,” he said during his appearance on the Pakistan Cricket Board’s podcast focusing on his career and the team’s ongoing dynamics. “And when there are brothers, they also sometimes have disagreements over little things. But thankfully, there is nothing like that in this team.”

“Our effort is always to play with unity,” he continued. “This is not the time where there can be argument or discord. This is a time when everyone has to be involved in one process, moving together with unity toward achieving the same goal.”

Afridi said he had fully recovered from his injury last year.

He maintained it was the team’s “job to play cricket and bring joy to our nation.”

“We are also tired of telling people that we will win the World Cup,” he said with a smile. “But God willing, this time we will make this happen.”


Pakistan’s state minister for IT says 5G launch preparations underway to boost digital economy

Updated 17 May 2024
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Pakistan’s state minister for IT says 5G launch preparations underway to boost digital economy

  • Shaza Fatima Khawaja says the move will create employment opportunities for Pakistan’s youth
  • The country last completed the auction for 3G and 4G networks about ten years ago in April 2014

KARACHI: Pakistan State Minister for IT and Telecommunication Shaza Fatima Khawaja has announced that preparations are underway to launch 5G spectrum services to promote the digital economy in the country, state-run Radio Pakistan reported on Friday.

Last year, Pakistan’s federal cabinet greenlighted the much-anticipated auction of 5G spectrum services in the country. Pakistan last completed the auction for 3G and the more advanced 4G networks— the first of its kind in the country— in April 2014.

“The launch of 5G will facilitate the country’s youth and create enormous employment opportunities in the IT sector,” the report quoted the state minister as saying while addressing a ceremony in Islamabad in connection with the World Telecommunication and Information Society Day.

The state minister highlighted the government was liaising with optic fiber companies and working to bolster the volume of their exports, capitalizing on the country’s potential in this sector.

She said that five billion rupees had also been allocated for the skill development of youth.

Khawaja added that the incumbent coalition government was working to expand the exports of around 35 companies engaged in manufacturing mobile phones.


Pakistan throws weight behind full UN membership for Palestine, urges Security Council action

Updated 17 May 2024
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Pakistan throws weight behind full UN membership for Palestine, urges Security Council action

  • UNGA last week overwhelmingly backed Palestinian bid to become full member by recognizing it was qualified to join
  • Palestinian push for full UN membership comes seven months into war between Israel and Hamas in the Gaza Strip

KARACHI: Pakistan has expressed support for a “historic” call by the United Nations General Assembly (UNGA) to admit the state of Palestine as a full member, the Foreign Office (FO) in Islamabad said on Friday, urging the UN Security Council to decide the matter “favorably.”

The UNGA last week overwhelmingly backed a Palestinian bid to become a full UN member by recognizing it was qualified to join and recommending the UNSC “reconsider the matter favorably.” The vote by the 193-member General Assembly was a global survey of support for the Palestinian bid to become a full UN member — a move that would effectively recognize a Palestinian state — after the United States vetoed it in the UN Security Council last month.

“Pakistan supports the historic call made by the UN general assembly made at the 10th emergency session to admit the state of Palestine as a full member,” FO spokesperson Mumtaz Zahra Baloch told reporters at a weekly press briefing.

“The resolution determined that the state of Palestine is qualified for membership of the UN and recommended the security council to decide the matter favorably.”

Baloch said the UNSC had been provided another opportunity to lift its objections to the admission of Palestine to the UN and “restore the credibility of the assurances that have been given in support of the two-state solution.”

The Palestinian push for full UN membership comes seven months into a war between Israel and Palestinian group Hamas in the Gaza Strip, and as Israel is expanding settlements in the occupied West Bank, which the UN considers illegal.

Palestinian health authorities say Israel’s ground and air campaign in Gaza has killed more than 35,000 people, mostly civilians after the war broke on Oct 7 when Hamas fighters stormed across the border into Israel.

Pakistan does not recognize the state of Israel and calls for an independent Palestinian state based on internationally agreed parameters and the pre-1967 borders with Al-Quds Al-Sharif as its capital.


Suspected militants bomb second girls school in a month in northwest Pakistan

Updated 17 May 2024
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Suspected militants bomb second girls school in a month in northwest Pakistan

  • The attack damaged part of the facility in South Waziristan, however, no one was injured in its wake
  • Though nobody claimed responsibility for the bombing, suspicion is likely to fall on the Pakistani Taliban

PESHAWAR: Suspected militants blew up another school for girls in a former stronghold of the Pakistani Taliban in Pakistan’s northwestern Khyber Pakhtunkhwa province, police and residents said on Friday.
The attack happened in the South Waziristan district that borders Afghanistan. It was the second one this month after another school was badly damaged in the region, according to district police Spokesman Habib Islam.
The overnight attack damaged one room of the facility, however, no one was hurt in its wake.
“A loud bang was heard in the night and police found early morning that a newly built girls’ school in Karikot, a village close to district headquarters of Wana City, was damaged in the explosion,” Islam told Arab News.
No one immediately claimed responsibility for bombing the school, but suspicion was likely to fall on the Pakistani Taliban, who have targeted girls’ schools in the province in the past.
A police officer from Wana said the management of the damaged school had received several threats in the past.
Jalal Wazir, general secretary of the Wana Welfare Association, regretted the bombing and said education was of “paramount importance” to beat illiteracy in the region.
“We can’t compete in today’s world if our girls are left uneducated,” Wazir said. “We will work to promote women education because if you educate a single girl, you educate an entire family.”
On May 9, unidentified militants had blown up a girls’ school on the outskirts of Miran Shah city in the neighboring North Waziristan district, prompting Prime Minister Shehbaz Sharif to direct authorities to immediately rebuild the damaged facility.
In May last year, two girls’ schools were blown up in the Mir Ali area of the North Waziristan district.
Pakistan witnessed multiple attacks on girls’ schools until 2019, especially in the Swat Valley and elsewhere in the northwest where the Pakistani Taliban long controlled the former tribal regions. In 2012, the insurgents attacked Malala Yousafzai, a teenage student and advocate for the education of girls who went on to win the Nobel Peace Prize.


Pakistan says will accelerate progress on major connectivity projects with China

Updated 17 May 2024
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Pakistan says will accelerate progress on major connectivity projects with China

  • The understanding to this effect was reached during Pakistan Deputy Prime Minister Ishaq Dar’s visit to China
  • The visit comes amid Pakistan’s push for foreign investment, with Islamabad seeing flurry of high-level exchanges

ISLAMABAD: Pakistan and China have resolved to accelerate progress on major connectivity projects and strengthen cooperation in multiple fields, Pakistan’s Foreign Office said on Friday, amid an increase in bilateral engagements with longtime ally Beijing to boost foreign investment in Pakistan.
The understanding to this effect was reached during Pakistan Deputy Prime Minister Ishaq Dar’s ongoing visit to China, where he met Chinese Foreign Minister Wang Yi and other top officials.
Beijing has been one of Islamabad’s most reliable foreign partners in recent years and has invested over $65 billion in energy and infrastructure projects as part of the China-Pakistan Economic Corridor (CPEC).
The project, part of President Xi Jinping’s ambitious Belt and Road Initiative, aims to connect China to the Arabian Sea via a network of roads, railways, pipelines and ports in Pakistan, and help Islamabad expand and modernize its economy.
“The two sides will work together to forge an upgraded version of CPEC by jointly building a growth corridor, a livelihood enhancing corridor, an innovation corridor, a green corridor by aligning them with Pakistan’s development framework and priorities,” said Mumtaz Zahra Baloch, a Pakistan foreign office spokeswoman, while briefing reporters on Dar’s visit.
“Together we will accelerate progress on major connectivity projects, including upgradation of ML-1 (Main Line-1), the Gwadar port, realignment of KKH (Karakoram Highway) phase-2, strengthen cooperation in agriculture, industrial parks, mining and information technology.”
The $6.8 billion ML-1 project is aimed at upgrading and dualizing the 1,872-kilometer existing railway track from the southern Pakistani port city of Karachi till Peshawar in the country’s northwest, while the port in Pakistan’s southwestern Gwadar city lies at the heart of CPEC.
Dar’s visit comes amid Pakistan’s recent push for foreign investment, with Islamabad seeing a flurry of high-level exchanges from diplomats and business delegations in recent weeks from Saudi Arabia, Japan, Azerbaijan, Qatar and other countries.
Earlier in the day, Prime Minister Shehbaz Sharif’s office said the premier had invited a Chinese research and investment firm, MCC Tongsin Resources, to invest in Pakistan’s mining sector and assured it of “maximum facilitation.” The statement came after Sharif’s meeting with a delegation of MCC Tongsin Resources, led by Chairman Wang Jaichen, in the federal capital of Islamabad.
“The government is taking steps on priority basis to increase foreign investment in the country,” Sharif was quoted as saying by his office. “In order to increase the exports of Pakistan, investment for the extraction of minerals, their processing and export will be fully facilitated.”
Sharif has vowed to rid the country of its chronic macroeconomic crisis through foreign investment and efficient handling of the economy.