ISLAMABAD: Finance Minister Muhammad Aurangzeb on Sunday vowed to accelerate privatization of state-owned entities (SOEs) in Pakistan as Islamabad gears up to hold crucial talks for a bailout package with the International Monetary Fund (IMF) next week.
Under the last $3 billion bailout package from the IMF that was critical in averting a sovereign debt default last year, the lender has said SOEs whose losses are burning a hole in government finances would need stronger governance. Pakistan is now negotiating with the IMF 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.
Aurangzeb confirmed that an IMF mission had arrived in the country and Islamabad would discuss next week the contours of another loan program with the team.
“We will take this forward and there will also be public-private sector partnership in it,” Aurangzeb said about the privatization of SOEs at a pre-budget conference in Lahore. “We will accelerate the privatization agenda.”
The finance minister said he and Deputy Prime Minister Ishaq Dar were on the “same wavelength” that there are no strategic SOEs.
“After a meeting tomorrow, we will go back to these ministries to say, ‘Hand over all of these [assets] to the private sector,’” he said.
Aurangzeb said investors’ confidence in the country’s economy was improving and credited the government’s policies for the positive outcome.
Pakistan needed structural reforms and the business community should be made a part of the tax net like the salaried class, he added.
Pakistan’s key stock index crossed the 73,000 mark on Friday to close the weekend trading session at an all-time high, as investors banked on renewed hopes of an interest rate cut and improving economic indicators in the country.
Pakistan saw one of the highest inflation regimes last year, with 38 percent inflation recorded in May 2023, which eased to 17.3 percent this April. Pakistani analysts expect a further fall in May, renewing optimism of an interest rate cut from the current 22 percent in the upcoming monetary policy.
Finance minister vows to ‘accelerate’ privatization of Pakistan state-owned assets ahead of IMF talks
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Finance minister vows to ‘accelerate’ privatization of Pakistan state-owned assets ahead of IMF talks
- Among main entities, Pakistan is pushing to privatize its national carrier, the Pakistan International Airlines
- Muhammad Aurangzeb confirms IMF team has arrived in Pakistan for talks next week on new loan program
Pakistan joins seven other Muslim states in condemning Israel’s latest ceasefire violation
- Repeated violations by Israel constitute “direct threat” to political process, hinder peace efforts, says joint statement
- Joint statement issued as tensions flare in Middle East after Israel killed 32 Palestinians, including children, on Saturday
ISLAMABAD: Pakistan and seven other Muslim states condemned Israel in a joint statement on Sunday for violating the fragile ceasefire in Gaza, saying that such efforts undermine peace efforts in the Middle East region.
The joint statement was issued after Israeli air strikes killed 32 people in Gaza on Saturday, the Palestinian territory’s civil defense agency said. A US-brokered fragile truce in Gaza entered its second phase last month but violence in the Palestinian territory has continued. Israel and Hamas both accuse each other of violating the agreement.
The joint statement was issued by the foreign ministers of Pakistan, Egypt, Indonesia, Jordan, Qatar, Saudi Arabia, Türkiye and UAE.
“The Foreign Ministers of the Islamic Republic of Pakistan, the Arab Republic of Egypt, the Hashemite Kingdom of Jordan, the United Arab Emirates, the Republic of Indonesia, the Republic of Türkiye, the Kingdom of Saudi Arabia, and the State of Qatar strongly condemn Israel’s repeated violations of the ceasefire in Gaza which have resulted in the killing and injuring of more than a thousand Palestinians,” the statement said.
The statement said such acts risk restoring stability at a time when regional and international parties are working to advance the second phase of US President Donald Trump’s peace plan and implement the UN’s Security Council resolution.
It said repeated violations by Israel constitute “a direct threat” to the political process and hinder ongoing efforts to create appropriate conditions for transitioning to a more stable phase in the Gaza Strip.
The countries stressed the necessity of “full commitment” to ensure the success of the second phase of Trump’s peace plan. The joint statement urged all sides to exercise restraint, refrain from any actions that may undermine the peace process and create favorable conditions to move forward toward early recovery and reconstruction.
The countries also backed the Palestinian right to self-determination and statehood in accordance with international law and relevant UN Security Council resolutions and the Arab Peace Initiative.
Israel’s latest strikes took place after Tel Aviv announced it would reopen the crucial Rafah crossing between Gaza and Egypt on Sunday for the “limited movement of people.”
The Gaza Health Ministry, which operates under the Hamas authority, has said Israeli attacks have killed at least 509 people in Gaza since the ceasefire came into effect.
