KARACHI: Prime Minister Shehbaz Sharif announced on Tuesday that his government would privatize all state-owned enterprises (SOEs) except for those deemed “strategically important” or essential ones, state-owned media reported, as Islamabad looks to overhaul its public entities to improve their performance.

The announcement is in direct conflict with Finance Minister Muhammad Aurangzeb’s statement from Sunday in which he said that all public entities would be handed over to the private sector. The minister had said he and Deputy Prime Minister Ishaq Dar were on the same page that “there is no such thing as a strategic SOE.” 

Former finance minister Dar had chaired a meeting of the Cabinet Committee on Privatization on May 10 in which he had said the government’s business would only be limited to essential or strategic SOEs. Dar said while priority would be accorded to loss-making entities, even SOEs who were earning profits would be considered for privatization.

PM Sharif chaired a high-level meeting on matters related to the Ministry of Privatization and Privatization Commission on Tuesday, the state-run Radio Pakistan reported.

“Prime Minister Shehbaz Sharif has announced to privatize all government-owned enterprises with the exception of strategically important state-owned enterprises,” Radio Pakistan said. “The Prime Minister directed all federal ministries to take necessary action in this regard and cooperate with the Privatization Commission.”

Pakistan’s Finance Division has defined strategic entities as those whose functions have significant strategic, security, or social importance in addition to economic values for the country. It has defined essential SOEs as those which are critical for the execution of government policies and where the private sector is unable to assume those functions due to various reasons. 

Pakistan agreed to overhaul its public entities under a $3 billion financial bailout agreement it signed with the International Monetary Fund (IMF) last year, a deal that helped it avert a sovereign debt default in 2023. The IMF has said Pakistan’s SOEs whose losses are burning a hole in government finances would need stronger governance. Pakistan is currently negotiating with the international lender for a larger, longer program for which it must implement an ambitious reforms agenda, including the privatization of debt-ridden SOEs.

Among the main entities Pakistan is pushing to privatize is its national flag carrier, the Pakistan International Airlines (PIA). The government is putting on the block a stake ranging from 51 percent to 100 percent.

Sharif instructed authorities to ensure transparency in the privatization process of all state-owned entities, including the PIA. 

“He directed to televise live Pakistan International Airlines Company Limited’s privatization including bidding and other important steps,” Radio Pakistan said. “The process of privatization of other institutions will also be broadcast live.”

The prime minister was informed that the pre-qualification process for PIA’s privatization would be completed by the end of May. He was told loss-making SOEs would be privatized on priority and that a “pre-qualified panel of experts” is being appointed in Pakistan’s Privatization Commission to speed up the process.

Separately, Aurangzeb chaired a meeting of the Cabinet Committee on State-Owned Enterprises on Monday which was attended by ministers of maritime affairs, economic affairs, housing and works, the governor of Pakistan’s central bank and other officials. The meeting was held to evaluate the performance of the country’s public entities and review the progress of the government’s privatization agenda.

Aurangzeb directed concerned ministries and divisions to submit proposals for the categorization of their respective public entities by May 20. The step is aimed at reviewing the rationale for retaining any commercial functions within the public sector, the finance ministry said.

“The objective is to retain only the essential functions within the public sector & to assign the remaining functions to the private sector,” it said. “At the same time the entities which remain in public sector have to be more competitive, accountable, and responsive to the needs of citizens.”

Participants agreed to foster transparency, efficiency, and sustainable growth within the SOEs, reflecting the government’s dedication to ensuring the optimal utilization of public resources, the ministry said.

Washington: The United States must move on from the “trauma” of two decades of war and step up counterterrorism efforts to face growing threats from Afghanistan and Pakistan, a study said Tuesday.

The study group, led by former senior US policymakers, made clear it was not advocating a return to America’s longest war which ended when President Joe Biden pulled troops from Afghanistan in 2021 and the Taliban regained control.

But it said that, after the overwhelming focus on counterterrorism following the September 11, 2001 attacks, the pendulum “appears to have swung in the opposite direction” as the United States focuses on competition with China, Russia’s invasion of Ukraine and Israel’s war on Hamas. 

“Both decision-makers and many who have labored within the national security agencies show signs of something like collective trauma resulting from a 20-year-long counterterrorism effort,” said the study group, convened in 2022 under the US Institute of Peace.

“The tragic end of US involvement in Afghanistan has also made it a toxic issue, reinforcing inclinations to keep the region off the policy agenda and the public’s radar,” it said.

But it said that extremist movements are “gaining strength in ways that threaten US and allied interests” and have found a “range of new opportunities for regrouping, plotting and collaborating” in Afghanistan.

It pointed to the Daesh, Taliban rivals who have nonetheless found a haven in Afghanistan and were implicated in a major attack in March in Moscow, and the Tehreek-e-Taliban Pakistan, which has been waging an armed campaign against Islamabad.

The report called on the United States to be “less restrictive” on the use of force against threats in Afghanistan — not a return to conventional war but pursuing military action against direct threats identified to the United States.

It also called for the United States to consider “shows of force” such as flying drones to pressure Taliban leaders to sever persistent ties with Al-Qaeda.

Noting a drop in US intelligence and capabilities since the withdrawal, the study called for the United States again to work with Pakistan, including on fighting militants and securing long-term US access to Pakistani airspace.

Pakistan became a top US aid recipient during the Afghanistan war but US officials long believed that Islamabad was playing a double-game and keeping the Taliban alive.

The Biden administration has shown little interest in engaging Pakistan, an inclination not helped by the tumultuous politics inside the world’s fifth most populous country.

“You’ve got a lot of people currently serving at the highest levels of the US government who have a strong distaste for Pakistan based on experience during the 20 years in Afghanistan,” said Laurel Miller, co-chair of the study group, who served as the US special representative for Afghanistan and Pakistan and now heads The Asia Foundation.

“There’s a strong feeling of Pakistan having been disingenuous, to say the least, with the United States,” she told AFP.

“But there are certain immutable realities, which include that Pakistan is next door to Afghanistan, which currently is a sanctuary for terrorist groups,” she said.

“So I think there’s just no choice other than to have a kind of relationship with Pakistan that enables the US to protect its own interests in the region.”

She said that US policy on Pakistan was also affected by the “zero-sum view” of India, a growing partner of Washington which has long criticized US ties with its neighbor and historic adversary.

The study called for the United States to make clear to Pakistan “serious negative repercussions” if militants based in the country again attack India.

The report’s other co-chair was Michael Nagata, a retired army lieutenant general with experience in counterterrorism.

Other members of the group included Anne Patterson and Michael McKinley, former US ambassadors to Pakistan and Afghanistan respectively, and prominent scholars.