Privatisation Advisor urges Govt to clarify it’s role as investors want independence in decision-making

ISLAMABAD: Prime Minister’s Advisor on Privatisation, Muhammad Ali, said on Monday that the government must decide whether it intends to retain its 26 percent stake in privatised entities, as the private sector is reluctant to involve government officials in decision-making for companies they have purchased.
He expressed these views at a press conference alongside Finance Minister Senator Muhammad Aurangzeb and Power Minister Sardar Awais Ahmad Khan Leghari.
Ali’s remarks came at a time when Saudi and Kuwaiti investors in K-Electric have served a $2 billion notice to the Government of Pakistan. The development, he warned, could also impact the privatisation process of power distribution companies (Discos), three of which are expected to be privatised by the end of next year.
“We are ensuring that the assets being sold do not create monopolies — whether among investors, the government, or consumers,” he said.
Referring to K-Electric, he noted that the government continues to provide subsidies to the company but aims to avoid similar arrangements with Discos after their privatisation.
“Some people argue that the government should sell only 26 percent of shares instead of 100 percent. But as a government, we have to decide whether we want to remain in business,” he said. “The private sector does not want to seek permission from officials for every decision — they prefer to operate freely.”
Speaking about the privatisation of Discos, Ali stressed that the government would proceed cautiously, as the process affects every citizen.
“We must ensure that once these companies are privatised, power supply is maintained across all regions, load-shedding is reduced, and electricity is provided at a fair cost,” he said, adding that a restructuring plan has been developed for all three Discos.
Ali further stated that all non-strategic assets should be privatised, as there is consensus within the government on this policy under the leadership of the Prime Minister.
He also outlined progress on the privatisation of several state-owned enterprises, highlighting the case of the First Women Bank and reiterating that the target is to privatise Pakistan International Airlines (PIA) by the end of the year. According to him, several leading business groups in Pakistan have expressed interest in acquiring the national flag carrier.