PM says Pakistan to privatize all state-owned entities except ‘strategically important’ ones

Pakistan Prime Minister Shehbaz Sharif (left) chairs a meeting of the Cabinet Committee on Privatization in Islamabad, Pakistan on May 14, 2024. (PTV News)
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Updated 14 May 2024
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PM says Pakistan to privatize all state-owned entities except ‘strategically important’ ones

  • Finance Minister Aurangzeb last week said there is “no such thing as strategic” public entities
  • Privatization of debt-ridden state entities is major reform demanded by IMF as Pakistan negotiates new bailout

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. 

The Oil & Gas Development Limited (OGDCL), Pakistan State Oil (PSO), National Bank of Pakistan, and hydropower projects are considered strategically important enterprises owned by the government. However, the government has not classified strategic assets for privatization yet.

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.

Tahir Abbas, the head of research at Arif Habib Limited, considered Pakistan’s largest securities brokerage company, said the conflicting statements between Sharif and Aurangzeb showed lack of coordination between them. 

“There seems lack of coordination between them on the classification of assets for privatization,” he told Arab News. 


KSrelief distributes 50,000 winter relief kits across Pakistan

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KSrelief distributes 50,000 winter relief kits across Pakistan

  • The packages included quilts, warms shawls and winter clothing for protection against extreme temperatures
  • Over 300,000 Pakistanis from 52 districts, including in Azad Kashmir and Gilgit Baltistan, received the winter kits

ISLAMABAD: The King Salman Humanitarian Aid and Relief Center (KSrelief) has distributed 50,000 winter relief kits in all four provinces of Pakistan as well as the Gilgit-Baltistan and Azad Kashmir regions, the Saudi charity said on Friday.
These kits were distributed as part of a large-scale humanitarian initiative, launched in January and aimed at assisting communities affected by severe winter conditions and natural disasters across Pakistan.
The Saudi charitable organization distributed the kits in collaboration with Pakistan’s national and provincial disaster management authorities, covering some of the coldest and most vulnerable regions in the country.
“The aid reached 17 districts in Khyber Pakhtunkhwa, 10 in Gilgit-Baltistan, 11 in Balochistan, six in Azad Kashmir, six in Sindh and two in Punjab,” KSrelief said in a statement.
“Each comprehensive winter package included two high-quality polyester quilts, warm shawl kits for men and women, and winter clothing for children and adults, ensuring that families had the necessary protection against extreme temperatures.”
The distribution was carried out in close coordination with the government and it benefitted over 337,079 people, according to the statement.
Saudi Arabia’s KSrelief has implemented more than 200 projects, including emergency relief for natural disasters and initiatives to address food security, health care and education, to improve the lives of vulnerable communities in Pakistan.


In a Pakistan desert town, Holi and Ramadan come together

Updated 38 min 15 sec ago
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In a Pakistan desert town, Holi and Ramadan come together

  • Discrimination against minorities runs deep in Muslim-majority Pakistan, but those tensions are not to be found in Mithi, an affluent city of rolling sand dunes and mud-brick homes
  • Ramadan is a month of prayer and reflection in Islam, and Hindus respected their Muslim neighbors would not join Holi celebrations with the usual fervor due to religious observance

MITHI: In a desert town in Pakistan, Hindus prepare meals for fasting Muslims, who in turn gather to welcome a Holi procession, a rare moment of religious solidarity in the Islamic nation.
Discrimination against minorities runs deep in Muslim-majority Pakistan, but those tensions are not to be found in Mithi, an affluent city of rolling sand dunes and mud-brick homes in southern Sindh province.
“All the traditions and rituals here are celebrated together,” Raj Kumar, a 30-year-old Hindu businessman told AFP.
“You will see that on Holi, Hindu youth are joined by Muslim youth, celebrating together and applying colors on each other,” he added.
“Even at the end of the Muslim call for prayer, the imam says ‘peace to Hindus and Muslims’.”

Hindu residents buy colour powders to celebrate the Hindu festival of Holy in Tharparkar district of the desert town of Mithi, south-eastern Pakistan, on March 13, 2025. ( AFP)

This year, the Hindu festival of Holi and the Islamic fasting month of Ramadan fell together. Both events move each year according to the lunar calendar.
Holi, the festival of color, has for centuries marked the arrival of spring and raucous crowds playfully throw colored powder and water over each other.
On Thursday, hundreds of Hindus held a procession through the streets of Mithi, one of the few towns where they form the majority, to be warmly welcomed at the city square by their Muslim neighbors.
“We have learnt to live together since childhood. This has come to us through generations, and we are following it too,” said local Mohan Lal Mali, 53, after arranging a meal for Muslims to break their fast.
Cows, considered sacred in Hinduism, roam freely through the streets of Mithi, while women wear traditional embroidered sarees embellished with mirror work.
There is no beef shop in town, as its meat is prohibited in Hinduism, and Muslims only sacrifice goats during festivals.
Mithi, a city of around 60,000 people, is predominantly Hindu — in a country where 96 percent of its 240 million people are Muslim and two percent are Hindu.
Fozia Haseeb, a Christian woman, traveled from the port city of Karachi, around 320 kilometers (200 miles) away, to witness the blended occasions.
“People following three religions are here: Christians, Hindus and Muslims,” she said.
“We wanted to see for ourselves whether this was correct, and there is no doubt it is.”

People celebrate Hindu festival of Holy in Tharparkar district of the desert town of Mithi, south-eastern Pakistan, on March 13, 2025. (AFP)

Ramadan is a month of peaceful prayer and reflection in Islam, and Hindus respected their Muslim neighbors would not join Holi celebrations with the usual fervor due to religious observance.
“Today, you might not see colors on me, but in the past, they would drench me in colors,” said Muslim cleric Babu Aslam Qaimkhani while applying powder to the face of local Hindu MP Mahesh Kumar Malani.
“If a Hindu runs for office, Muslims also vote for them, and vice versa,” said Malani, the only elected minority MP in the country’s national assembly.
As Hindus celebrated with processions and visits to temples, there was no armed security — a stark contrast to other parts of Pakistan.
Freedom of religion or belief remains under constant threat in the country, with religiously motivated violence and discrimination increasing yearly, according to the Human Rights Commission of Pakistan.
State authorities, often using religious unrest for political gain, have failed to address this crisis, the commission said.
But in Mithi, 19-year-old Muslim laborer Amaan Ullah told AFP: “There are no divisions among us. We all are humans, and we all are equal.”
Local police and administration officials said the city has a low crime rate, with “no major security challenges,” allowing them to easily make arrangements for the major religious festivals.
“Their businesses, their daily lives, and their interactions have been together for centuries and they are still standing strong,” said local official Abdul Haleem Jagirani.

Hindu women watch the procession as they celebrate Hindu festival of Holy in Tharparkar district of the desert town of Mithi, south-eastern Pakistan, on March 13, 2025. (AFP)

Locals say Mithi’s peaceful existence can be traced back to its remote location, emerging from the sand dunes of the Tharparkar desert, which borders the modern Indian state of Rajasthan.
With infertile soil and limited water access, it was spared from centuries of looting and wars, and the bloody Partition violence of 1947 when India and Pakistan were created, and many Hindus fled across the new border.
But several residents told AFP that in recent years the prosperous city has seen a rise in newcomers as a result of its growing infrastructure.
A major coal project nearby has brought laborers from other provinces to the city, and with it, supporters of a radical Islamist party.
On the city’s central square, a large banner hangs for Tehreek-e-Labbaik Pakistan (TLP), which put the explosive issue of blasphemy as its central concern.
“People coming from outside the city are causing some doubt and a slight sense of fear,” Padma Lodha, a 52-year-old Hindu headmistress at a local girls school, told AFP.
“But overall, things are still well-controlled and peaceful.”


EU mission to host business, investment forum in Pakistan this year — finance ministry

Updated 14 March 2025
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EU mission to host business, investment forum in Pakistan this year — finance ministry

  • The forum aims to foster collaboration and discuss how Pakistan can continue to attract European businesses, investment
  • Finmin thanks EU envoy for the initiative, underscores his government’s commitment to supporting EU businesses in Pakistan

ISLAMABAD: The European Union (EU) mission in Pakistan will be hosting a business and investment forum in Islamabad this year, the Pakistani finance ministry said on Friday.
The statement came after EU Ambassador to Pakistan Riina Kionka’s meeting with Finance Minister Muhammad Aurangzeb, which focused on a range of matters of mutual interest, particularly business and investment ties between the EU and Pakistan.
During the meeting, the two figures discussed opportunities for European businesses in Pakistan and emphasized the need to create an enabling investment climate to harness the growing appetite for expansion, according to the Pakistani finance ministry.
Dr. Kionka said the EU had already mapped over 300 European companies in Pakistan and there were many more present, extending an invitation to Senator Aurangzeb to attend the business and investment forum, which the EU mission is planning to host in Islamabad in mid-May.
“The forum aims to foster collaboration and discuss how Pakistan can continue to attract European business [and] investment,” the finance ministry said. “She emphasized that European companies were increasingly viewing Pakistan as a hub for potential business opportunities, especially in light of the upcoming forum.”
Pakistan, currently bolstered by a $7 billion International Monetary Fund (IMF) program, is seeking foreign investment and an increase in trade to revive its fragile $350 billion economy.
Aurangzeb thanked the EU envoy for taking the initiative to host the forum, underscoring the government’s commitment to supporting EU businesses in Pakistan, facilitating their operations, and ensuring timely repatriation of dividends and profits.
He expressed appreciation for the EU’s support for Pakistan, particularly the importance of the Generalized Scheme of Preferences Plus (GSP+) facility, which has been a critical enabler of Pakistan’s efforts to drive export-led growth.
The GSP+ scheme grants beneficiary countries’ exports duty-free access to the European market in exchange for voluntarily agreeing to implement 27 international core conventions, including on human and civil rights. In October 2023, the EU unanimously voted to extend GSP+ status until 2027 for developing countries, including Pakistan.
“The Minister also emphasized the need for a more proactive approach in reaching out to European capitals for constructive engagement on key issues, including the continuation of the GSP Plus facility, which is vital for Pakistan’s trade relations with the EU in the coming years,” the finance ministry said.
“Both leaders reaffirmed their shared commitment to enhancing the economic and trade ties between Pakistan and the European Union, and to creating a thriving and mutually beneficial business environment for both sides.”


At UNSC, Pakistan calls for ceasefire, technocratic government in Sudan

Updated 46 min 14 sec ago
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At UNSC, Pakistan calls for ceasefire, technocratic government in Sudan

  • The war between Sudan’s army and Rapid Support Forces has displaced around 12 million people since 2023
  • Pakistan’s envoy says any scheme that undermines UN Charter principles will further complicate the conflict

ISLAMABAD: Pakistan’s Permanent Representative to the United Nations (UN) Ambassador Munir Akram has called for the establishment of an independent technocratic government in Sudan to manage the transitional period and urged warring parties to declare a ceasefire, Pakistani state media reported on Friday.
The war between Sudan’s army and the paramilitary Rapid Support Forces (RSF), which erupted in April 2023 over disputes regarding the integration of the two forces, has killed tens of thousands of people, displaced millions and left half of the Sudanese population facing hunger.
The conflict has also triggered waves of ethnically driven violence, largely blamed on the RSF, leading to a severe humanitarian crisis. The UN says that nearly two-thirds of Sudan’s population, or more than 30 million people, will need aid this year.
“The appointment of an independent prime minister and formation of an independent national technocratic government to oversee the transitional period could be steps in a positive direction,” the Associated Press of Pakistan (APP) news agency quoted Akram as saying at a meeting of the UN Security Council (UNSC) to discuss the Sudan situation.
“The conflict will not be resolved on the battlefield [and] war will only bring more death and destruction to the Sudanese people.”
Akram condemned the signing of a charter by the RSF and its allies for a parallel governing authority in Sudan.
“Any such external intervention and any scheme that undermines the UN Charter principles will further complicate the conflict, prevent an early solution and further undermine regional and international peace and security,” he said.
The Pakistan envoy urged warring parties in Sudan to abide by the international humanitarian law and facilitate humanitarian assistance in the affected areas.
United Nations Children’s Fund (UNICEF) Executive Director Catherine Russell said the Sudanese children were enduring “unimaginable suffering and horrific violence,” calling for an immediate end to the conflict.
“This is not just a crisis, it is a poly-crisis affecting every sector, from health and nutrition to water, education and protection,” she said.
“I met with families and children who are living through this nightmare. Their stories are heartbreaking – and demand immediate action.”


PM Sharif stresses need for diversity, inclusion as Hindus celebrate Holi in Pakistan

Updated 14 March 2025
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PM Sharif stresses need for diversity, inclusion as Hindus celebrate Holi in Pakistan

  • There are over 5 million Hindus in Pakistan who have often complained of discrimination, blasphemy accusations, abduction and forced conversions
  • Authorities, striving to improve Pakistan’s image regarding religious tolerance, have repeatedly asserted commitment to equal rights for all citizens

ISLAMABAD: Prime Minister Shehbaz Sharif on Friday stressed the importance of diversity and inclusion to build a stronger nation as he wished Hindus celebrating Holi in Pakistan.
The Hindu festival, which heralds the start of spring, is observed at the end of the winter season on the last full moon of the lunar month.
There are more than 5 million Hindus in Pakistan who have often complained of discrimination, blasphemy accusations, abduction and forced conversions.
Pakistani authorities, striving to improve the country’s image regarding religious tolerance, have repeatedly asserted the state’s commitment to diversity and equal rights for all citizens.
“I extend my heartfelt greetings to our Hindu community in Pakistan on the joyous occasion of Holi. The vibrant energy that surrounds this festivity mark the arrival of spring, symbolizing love and the triumph of good over evil,” Sharif said on X.
“While celebrating new beginnings, renewal, and the strengthening of relationships, this occasion also highlights the importance of diversity and the power of inclusion in building a stronger, more unified nation.”
Hindu men, women and children celebrate the festival by spraying colored powder solutions into the air through water guns and water-filled balloons and smearing it on each other. The devotees serve visitors with delicacies such as gujia, shakkarpaare, matri and dahi-bade as well as desserts and drinks.
People also gather around a lit bonfire and perform various rituals on the eve of Holi, symbolizing the victory of good over evil and removal of the old and the arrival of the new.
In Pakistan, major Holi festivities are witnessed in Tharparkar, Karachi and a number of other cities.
“May this festival of colors fill your lives with happiness, health success, and prosperity,” Sharif said on X. “Happy Holi!”