Khawaja Asif calls for faster privatisation reforms

Defence Minister Khawaja Asif has stressed the importance of accelerating the privatisation of state-owned enterprises, arguing that delays in reforms have imposed a massive financial burden on Pakistan’s economy over the years.

Speaking on a television programme, Khawaja Asif said that if the Pakistan Steel Mills had been closed in 1991, the country could have avoided losses worth hundreds of billions of rupees. He maintained that prolonged support for loss-making public sector entities has significantly strained national finances and diverted resources away from development priorities.

Referring to Pakistan International Airlines, the minister claimed that delays in its privatisation since 2016 had added an additional burden of around Rs600 billion. According to him, these funds could have been invested in infrastructure, public services, and other development projects that directly benefit citizens.

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Khawaja Asif acknowledged that national economic priorities had not always aligned with the country’s actual needs. He noted that Prime Minister Shehbaz Sharif is actively pursuing the privatisation agenda and seeking to improve the efficiency of public sector institutions.

The minister revealed that three major electricity distribution companies — GEPCO, FESCO, and LESCO — are expected to be offered for privatisation within the next three months. He expressed confidence that reducing government losses would create fiscal space for important projects, including water infrastructure initiatives.

Highlighting Pakistan’s history of economic reforms, Khawaja Asif said former Prime Ministers Nawaz Sharif and Benazir Bhutto oversaw much of the country’s privatisation process. He added that several banks privatised during that period have since become highly profitable institutions.

The minister also raised concerns about governance practices, claiming that some bureaucrats have served on an excessive number of boards, underscoring the need for stronger institutional oversight and accountability.