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
Pakistani, Uzbek leaders urge business community to help achieve $2 billion trade target
- Pakistan and Uzbekistan have steadily increased economic ties in recent years, with bilateral trade volume reaching nearly $500 million
- President Shavkat Mirziyoyev says business community is ‘most important bridge’ linking both nations, promising favorable business climate
ISLAMABAD: Pakistan Prime Minister Shehbaz Sharif and Uzbekistan President Shavkat Mirziyoyev on Friday urged businesspersons from both countries to help the two countries achieve a bilateral trade target of $2 billion within the next five years.
The two leaders made the call while addressing traders, industrialists from both countries at the Pakistan Uzbekistan Business Forum in Islamabad during President Mirziyoyev’s visit to the South Asian country.
Pakistan and Uzbekistan have steadily increased economic ties in recent years as Pakistan offers landlocked Central Asian states greater access to global markets, aiming to position itself as a regional transit hub.
Pakistan was the first Central Asian partner with which Uzbekistan signed a bilateral Transit Trade Agreement, along with a Preferential Trade Agreement in March 2022, covering 17 items, which became operational in 2023.
“We agreed that political goodwill must be matched by economic actions and words must be converted into implementation,” Sharif said, citing his visit to Tashkent last year which had helped brought annual bilateral trade to nearly $450 million.
“Today, ladies and gentlemen, we will strengthen last night’s protocol by signing another document today, which will give you vistas of opportunities to sit down together, B2B (business to business), have wonderful discussions with your counterparts and come to arrangements in terms of joint ventures, investments in Uzbekistan and Pakistan.”
Sharif was referring to the protocol signed between the two countries on Thursday to establish a joint working group to formulate a five-year action plan to take bilateral trade to $2 billion. Both sides also signed 28 agreements focused on areas such as defense cooperation, climate change, disaster risk reduction, disaster management, agriculture, exports of fruits, and mining and geosciences.
President Mirziyoyev said the increase in bilateral trade to half-a-billion dollars was an outcome of their talks held in Tashkent in Feb. last year.
“Over the course of very comprehensive and detailed discussions yesterday, we together decided that this is far [from] being enough,” he told businessperson from both countries.
The Uzbek president said business community is the “most important bridge” in linking the two nations and it was their job as heads of the state to ensure favorable conditions for them.
“Success of this agreement is in your hands,” he told the attendees, assuring them of eliminating any obstacles and bottlenecks in the process.
Later, Pakistan President Asif Ali Zardari conferred the Nishan-e-Pakistan, the highest civilian award of the country, on President Mirziyoyev at a televised ceremony.
The Nishan-e-Pakistan is awarded to individuals who have rendered services of highest distinction to the national interest of Pakistan and has often been conferred on visiting Heads of State as a mark of respect and friendship.
