Pakistan’s Finance Minister Advocates for Privatization

Pakistan’s Finance Minister Muhammad Aurangzeb has called for the immediate abolition of federal ministries that cover subjects devolved to provinces following the 18th Amendment. This move is aimed at controlling unnecessary government expenditures.

During a press conference in Kamalia, Aurangzeb defended the privatization of loss-making state-owned enterprises (SOEs), asserting that Pakistan’s progress hinges on the private sector’s involvement. He addressed concerns about potential job losses due to privatization, emphasizing that the financial resources used to sustain SOEs could be better allocated to provide relief to the populace.

Aurangzeb highlighted that the country is burdened by the financial upkeep of these entities, which must be addressed. He pointed out that the salaried class could not receive adequate relief due to the billions spent on SOEs.

With Islamabad seeking a “bigger” and “longer” International Monetary Fund (IMF) program, privatization is one of the government’s key tasks to meet the conditions set by the Bretton Woods Institution. The Finance Minister’s remarks come as part of a broader restructuring plan, which includes Prime Minister Shehbaz Sharif’s directive to shut down unnecessary ministries and departments responsible for extra expenditures and duplicative work.