Pakistan will privatise all state-owned enterprises, with the exception of strategic entities, Prime Minister Shehbaz Sharif announced on Tuesday, broadening its initial plans to take only loss-making state firms private.

The premier chaired a review meeting and green-lighted privatization of profitable and loss-making SOEs.

Shehbaz directed all federal ministries to take necessary action in this regard and cooperate with the Privatization Commission, adding that the move aimed at ensuring a business and investment-friendly environment.

Directing concerned authorities to ensure transparency, the premier ordered to televise the privatization process of Pakistan International Airlines (PIA), including the bidding.

Following the premier’s instructions, the privatization process of other institutions will also be broadcast live.

A roadmap of the Privatization Program 2024-2029 was presented during the meeting and the ministers were informed about the progress made so far for the privatization of SOEs.

It was informed that the pre-qualification process for PIA’s privatization will be completed by the end of the month and that the privatization of power distribution companies has also been included in the program.

Read Profitable SOEs erased from sell-off list

It was noted that loss-making SOEs were to be privatized on a priority basis and that a pre-qualified panel of experts is being appointed in the Privatization Commission to speed up the sell-off process.

On Sunday, Finance Minister Muhammad Aurangzeb dismissed the concept of ‘strategic’ SOEs advocating for a broad privatisation strategy and reiterating the government’s commitment to tax retailers.

Aurangzeb’s statements came during a pre-budget conference in Lahore, following Deputy Prime Minister Ishaq Dar’s announcement that the PML-N government would narrow its business scope to strategic and essential SOEs, with a plan to reduce their number after thorough scrutiny.

Dar in the CCoP meeting said that privatisation of loss-making SOEs was a priority for the government.

The meeting noted that 40 SOEs were currently categorised as strategic but respective ministries would submit their details to the Cabinet Committee on State-Owned Enterprises (CCoSOE) and the CCoSOE would determine the status of the SOEs to be categorised as strategic or essential entities.

However, speaking at the conference, the minister said there was no such thing as a strategic SOE.

Regarding the privatisation of PIA and the Islamabad Airport, the minister said the government was not just looking at foreign investors. “There are local and foreign investors who are bidding [for the SOEs],” he said.

He said if this country had to come out of difficulties, the private sector would have to step forward.