Top SIFC body keen to speed up privatisation of loss-making SOEs

ISLAMABAD: The apex committee of the Special Investment Facilitation Council (SFIC) on Wednesday resolved to fast-track the privatisation process of cash-bleeding state-owned enterprises to reduce the recurring losses to national exchequer.

Caretaker Prime Minister Anwaar-ul-Haq Kakar chaired the meeting, attended by Chief of Army Staff (COAS) General Asim Munir, members of the federal cabinet, provincial chief ministers and high-level government officials.

The ministries apprised the forum of the practical steps undertaken during the last month to improve the business and investment environment in the country. The COAS assured the unflinching resolve of the army to support the government’s endeavours for a sustainable path towards economic recovery, the Prime Minister’s Office said in a statement.

The committee reviewed major macroeconomic issues affecting the investment climate, including inordinate delays in restructuring and privatisation of cash-bleeding state-owned enterprises (SOEs). It also resolved with consensus on fast-tracking the privatisation process and hence, in the larger interest of the country, reducing recurring losses to national exchequer.

It expressed overall satisfaction over the ongoing negotiations with foreign and domestic investors for the timely realisation of various investment prospects.

Prime Minister Anwaar-ul-Haq Kakar appreciated the good work put forth by various ministries and departments and directed its continuation with the ‘Whole of the Government’ approach to overcoming the economic challenges.

APP adds: Addressing a press conference here, Federal Minister for Commerce Dr Gohar Ejaz termed the recently-signed Free Trade Agreement (FTA) with the Gulf Cooperation Council (GCC) a breakthrough for trade, making Pakistan the first country to have secured such an arrangement providing it access to a substantial market. “This is very positive news for Pakistan’s exports towards the Gulf countries,” the minister said.

He was flanked by Federal Caretaker Minister for Information and Broadcasting Murtaza Solangi, Caretaker Minister for Power and Petroleum Muhammad Ali and Caretaker Minister for Interior Sarfaraz Ahmad Bugti.

Gohar said Pakistan was the first country to have signed an FTA with GCC last week. The minister said GCC was a market of around $1 trillion in exports and $550 billion in imports, but Pakistan’s share in imports from the bloc was $19 billion on average, as it was importing energy and petrochemical products while the exports share was a mere $2.5 billion. He lauded Saudi Arabia for playing an important role in materialising the agreement with six Gulf countries.

Gohar Ejaz said Pakistan also raised the issues of Pakistani overseas workers in Saudi Arabia. He said discussions revolved around putting in place a mechanism to facilitate proper certification of workers to comply with the new laws in Saudi Arabia. He said the government had drafted a proper law to facilitate the Afghan transit trade adding that smuggling of transit goods from Afghanistan had increased to $6.7 billion. He said under the new law, it had also prepared a negative list of exports to Afghanistan.

The minister said Pakistan was committed to facilitating genuine trade with Afghanistan but the neighbouring country would have to pay bank guarantees equal to duties of goods and a 10 percent transit fee for using the Pakistani infrastructure. He said the government wanted to ensure that the goods meant for Afghanistan did not return to Pakistan.

The minister said that the caretaker government was committed to boosting exports by up to $32 billion this year. He said the export-oriented industry would be provided with energy on a priority basis in winter to boost exports. Ejaz also mentioned bumper cotton crop as 5 million bales were harvested till September and the figures would grow further. He also highlighted improvement in rice exports by $1 billion as a good development for the economy.

Speaking on the occasion, Caretaker Minister for Power and Petroleum Muhammad Ali said an amount of Rs16 billion had been collected from electricity defaulters so far during the ongoing crackdown, which would further continue.

He said it had been decided to change the board of directors (BoDs) of all the power distribution companies (DISCOs). The management of DISCOs would be handed over to the private sector on long-term concession, he added.

The minister said despite various constraints, all-out efforts were being made to ensure the availability of gas to domestic, industrial and fertilizer sectors with minimum gas load management in the coming winter season.

“We have only two LNG terminals and limited natural gas but today we have finalized two LNG cargoes for December, which would help address the gas supply issues in December for the industry. The gas supply was also being improved for the fertilizer sector, he added.