IMF team briefed on privatization strategy of loss-making state entities

ISLAMABAD: The officials have briefed the International Monetary Fund (IMF) delegation about the government strategy for privatization of the loss-making state enterprises.

Pakistani officials informed the visiting IMF delegation about the government’s intention to establish a ‘wealth fund’to turn the loss-making state owned entities into profit making enterprises before their privatization, sources said.

According to sources, the government has informed the visiting IMF team that it has planned to privatize seven state-owned enterprises initially.

The economic figures indicate a heavy burden over the national economy due to the loss-making state entities as according to an estimate, the collective losses of these entities have crossed over 1200 bln rupees.

The IMF has urged the government to control the losses of the state entities. The visiting team of the lender has also expressed dissatisfaction over the performance of the energy sector and the balooning circulation debt.

The IMF officials said that the government had assured about reforms in power sector during the previous bailout talks. The Fund also demanding a speedy privatization of the loss-making entities.

It is pertinent to mention here that the officials have briefed the IMF delegation about the government decision of not to offer Pakistan Steel Mills, Pakistan International Airlines (PIA), Pakistan Railways, and some other loss-making entities for privatization.