Business
WB raises questions on Pakistan’s privatization process
World Bank said that government should bring the shares of the companies to the stock market and privatize them transparently.
Islamabad: The World Bank has raised questions on Pakistan’s privatization process.
According to details, World Bank said that privatization process will be affected by political interference or cases in the courts. The profit of Pakistani government companies is the lowest among South Asian countries. In 2014, the profit of Pakistani government companies was 0.8 percent of GDP and in 2020, the losses of state-owned companies were equal to 0.4 percent of Gross Domestic Product (GDP).
The World Bank said Pakistan's privatization program has stalled since the Supreme Court's 2007 ruling. The Supreme Court's judgments of Pakistan Steel Mills and Reko Diq cases made Pakistan emerged as a global treaty defaulter.
According to the World Bank, there was a further delay in the privatization of Pakistan Capital Act during the era of Pakistan Tehreek-e-Insaf (PTI). The privatization of the power sector institutions could not be done due to the labor union. While even after the privatization of K-Electric, the performance remained unsatisfactory.
The World Bank added that even the political parties do not agree on the privatization program and state-owned companies of other countries are likely to face court cases over privatization. The government should bring the shares of the companies to the stock market and privatize them transparently.