Pakistan’s finance chief admits privatization setbacks, vows to carry it out

Pakistan’s Minister for Finance and Revenue Muhammad Aurangzeb speaks during a discussion on Pakistan, during the International Monetary Fund and World Bank Group 2024 Annual Meetings, in Washington, DC, on October 22, 2024. (Reuters/File)
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Updated 20 February 2025
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Pakistan’s finance chief admits privatization setbacks, vows to carry it out

  • Muhammad Aurangzeb says the government wants to reestablish Pakistan as a ‘bankable brand’
  • He says it is important for the country to restore people’s trust in the Pakistani tax authorities

KARACHI: Federal Minister for Finance and Revenue Muhammad Aurangzeb acknowledged on Thursday Pakistan’s privatization efforts have encountered setbacks, notably a failed attempt to sell the national airline last year, though he affirmed the government’s commitment to advancing the privatization agenda.
Speaking at an economic conference in Islamabad, Aurangzeb addressed the difficulties faced in divesting state-owned enterprises (SOEs), a key component of the International Monetary Fund’s (IMF) structural reform requirements.
The privatization initiative aims to alleviate the financial burden of loss-making SOEs on the national economy. Last October, the sought to sell Pakistan International Airlines (PIA) after multiple delays in the bidding process.
The final round attracted only one bid from real estate developer Blue World City, offering Rs10 billion ($36 million) for a 60 percent stake — substantially below the government’s minimum price of Rs85 billion. Consequently, the privatization ministry rejected the offer, citing non-compliance with financial expectations.

“We have faced hiccups while doing privatization,” Aurangzeb said at the Pakistan Retail Business Conference. “PIA is getting to be relaunched. But we are very determined to take this forward.

The government anticipates that PIA privatization prospects will improve following the resumption of flights to Europe in January 2025. PIA’s operations to the European Union were suspended in June 2020 due to safety concerns after a crash in Karachi, resulting in a four-and-a-half-year ban.
The minister emphasized the government’s stance on limiting its role in commercial enterprises, advocating for private sector leadership in economic activities.
“The private sector has to lead the country,” he asserted. “The government must be there to provide policy framework and policy continuity.”
Aurangzeb outlined the administration’s vision to reestablish Pakistan as a “bankable brand,” necessitating comprehensive structural reforms currently underway. These reforms include measures to control public expenditure and expedite the rightsizing of government operations.
He highlighted significant transformations in the taxation system, focusing on digitization to incorporate all businesses into an equitable tax framework.
“It is very important that we restore the trust in the tax authorities,” he noted.


Death toll in Pakistan shopping plaza fire rises to 67, officials say

Updated 22 January 2026
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Death toll in Pakistan shopping plaza fire rises to 67, officials say

  • Rescue teams still searching for damaged Gul Plaza in Karachi where blaze erupted on Saturday, says police surgeon
  • Karachi has a long history of deadly fires, often linked to poor safety standards, weak regulatory enforcement

KARACHI: The death toll from a devastating fire at a shopping plaza in Pakistan’s southern port city of Karachi jumped to 67 on Thursday after police and a hospital official confirmed that the remains of dozens more people had been found.

Police surgeon Dr. Summaiya Syed said rescue teams were still searching the severely damaged Gul Plaza in the Karachi, where the blaze erupted on Saturday.

Most remains were discovered in fragments, making identification extremely difficult, but the deaths of 67 people have been confirmed, she said. Asad Raza, a senior police official in Karachi, also confirmed the death toll. Authorities previously had confirmed 34 deaths.

Family members of the missing have stayed near the destroyed plaza and hospital, even after providing their DNA for testing. Some have tried to enter the building forcibly, criticizing the rescue efforts as too slow.

“They are not conducting the search properly,” said Khair-un-Nisa, pointing toward the rescuers. She stood outside the building in tears, explaining that a relative who had left to go shopping has been missing since the blaze.

Another woman, Saadia Saeed, said her brother has been trapped inside the building since Saturday night, and she does not know what has happened to him.

“I am ready to go inside the plaza to look for him, but police are not allowing me,” she said.

There was no immediate comment from authorities about accusations they have been too slow.

Many relatives of the missing claim more lives could have been saved if the government had acted more swiftly. Authorities have deployed police around the plaza to prevent relatives from entering the unstable structure, while rescuers continue their careful search.

Investigators say the blaze erupted at a time when most shop owners were either closing for the day or had already left. Since then, the Sindh provincial government has said around 70 people were missing after the flames spread rapidly, fueled by goods such as cosmetics, clothing, and plastic items.

The cause of the fire remains under investigation, though police have indicated that a short circuit may have triggered the blaze.

Karachi has a long history of deadly fires, often linked to poor safety standards, weak regulatory enforcement, and illegal construction.

In November 2023, a shopping mall fire killed 10 people and injured 22. One of Pakistan’s deadliest industrial disasters occurred in 2012, when a garment factory fire killed at least 260 people.