Privatization receipts being spent to reduce Debt

July 9, 2021

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At a briefing in front of the Senate Standing Committee on Privatization, the secretary of the Ministry of Privatization said that 90 percent of the proceeds from the privatization of public sector enterprises being used to pay off the debts of the state, and 10 percent – to reduce poverty.

Representatives of the ministry provided detailed information on the overall work and results of the Ministry of Privatization and its subsidiaries, as well as on the draft “Law on Privatization (Amendment) 2021” presented by the House of Representatives. Senator Shamim Afridi headed the parliamentary committee.

Officials expressed hope that the privatization of some public limited companies will be completed in the current fiscal year. The government is likely to speed up the privatization program, as it is expected to generate Rs 252 billion in privatization proceeds this fiscal year.

As per the Ministry Officials, privatisation process for of SME Bank, First Women Bank Limited, Jinnah Convention Centre, House Building Finance Corporation Limited, and Services International Hotel is in advanced stages.

Finance Minister Shaukat Tarin had previously announced that the government will speed up the privatization program within a few months.

The government has also assured the International Monetary Fund (IMF) that it will complete the privatization of several small and medium-sized enterprises in 2021-2022.