Cabinet to review five-year privatization plan

IMG has demanded immediate privatization of government-owned commercial companies

ISLAMABAD:

The Privatization Commission has prepared a five-year programme for the privatization of government-owned institutions. This programme will be presented to the privatization committee of the cabinet for approval today (Friday).

According to sources, the International Monetary Fund (IMF) has demanded a roadmap for privatization ahead of a new loan programme. The cabinet committee will set the targets for the first year and the following three years of privatization.

The IMF has demanded immediate privatization of all government-owned commercial companies. The Privatization Commission has recommended privatization of loss-making commercial companies.

Currently, 87 commercial companies are operating in government departments, sources said. Federal ministries have recommended not privatizing 39 government commercial companies. Under the new law, only the Ministry of Finance can declare a company strategic.

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The source said the rights of employees will be protected during privatization of government commercial companies. Employees of these organizations may be offered golden handshakes. The cabinet's privatization committee will decide on the package to be offered to such employees.

Privatization refers to the process of transferring ownership of a business, enterprise, or public service from the government to private ownership and control.

This can involve selling off state-owned assets, contracting out services previously provided by the government, or allowing private companies to operate in sectors that were previously under government control.

The aim of privatization is often to increase efficiency, competition, and innovation in the economy by subjecting previously state-controlled entities to market forces.