Govt, PBC discuss SOEs restructuring, privatisation

On Tuesday, the government and the Pakistan Business Council (PBC) engaged in discussions aimed at restructuring state-owned enterprises (SOEs) as part of broader efforts to enhance efficiency, diminish the state's commercial presence, and spur private-sector involvement. Khurram Schehzad, Advisor to the Finance Minister, convened a meeting with Ziad Bashir, newly appointed Chairman of the PBC, and Javed Kureishi, Chief Executive Officer, at the Finance Division.

The dialogue centered on measures to promote investment, bolster private-sector engagement, and advance the government's overarching structural reform strategy.

The meeting facilitated conversations on the proposed privatization of power distribution companies (DISCOs), banks, and airports, with a focus on enhancing efficiency, attracting investment, and elevating service delivery through increased private-sector engagement. There was also emphasis on offloading all loss-making SOEs within a 12-month period, as urgently urged by the new PBC Chairman.

Discussions also highlighted opportunities for bringing major public-sector entities to the capital markets via initial public offerings (IPOs), such as State Life Insurance Corporation (SLIC). Greater involvement of private and institutional investors was seen as a means to foster improved corporate governance, transparency, operational efficiency, and access to capital, aligning with the government's goal of stimulating market-driven economic activity.

PBC leadership expressed backing for the government's rightsizing initiative, stressing the significance of developing a leaner, more efficient, and focused public sector. The meeting also addressed tax rationalization and the blueprint for a medium-term tax policy framework. Both parties underscored the importance of a transparent, predictable, and competitive tax system that encourages investment, business expansion, and sustained economic activity.

Recommendations and inputs from the business sector were to be communicated to the government to guide ongoing medium-term tax policy discussions.

PBC leadership acknowledged and backed the measures outlined in the Federal Budget for FY27, particularly the shift from concentrating on increasing the tax burden to expanding the tax base and stimulating economic activity. The PBC welcomed the incentives provided to the private sector, especially initiatives aimed at assisting exporters, boosting competitiveness, curbing business costs, and motivating investment and growth.

Khurram Schehzad commended the PBC's involvement, stressing the criticality of ongoing consultations with the business community to shape economic policies and reforms. He noted that effective government-business dialogue is vital for cultivating investor confidence, refining the business environment, and devising practical, sustainable reform measures.