KARACHI: Pakistan is considering bringing state-owned companies including the country’s largest life insurer to the capital markets through initial public offerings, the finance ministry said on Tuesday, as the government seeks to reduce its commercial footprint and expand private-sector participation in the economy.
Officials discussed potential listings alongside plans to privatize power distribution companies, banks and airports at a meeting between government Finance Adviser Khurram Schehzad and the leadership of the Pakistan Business Council (PBC), as Islamabad pushes ahead with structural reforms mandated under a $7 billion International Monetary Fund (IMF) loan program.
“The meeting provided an opportunity to discuss key areas of economic reform, including the government’s ongoing privatization program, restructuring of State-Owned Enterprises (SOEs) and measures to reduce the government’s footprint in commercial activities,” the Finance Division said in a statement.
“The participants also discussed opportunities for bringing major public-sector entities to the capital markets through Initial Public Offerings (IPOs), including State Life Insurance Corporation,” the statement said.
Participants agreed that greater participation by private and institutional investors could improve corporate governance, transparency, operational efficiency and access to capital, while contributing to the government’s objective of encouraging market-led economic activity.
The two sides also discussed tax rationalization and the development of a medium-term tax policy framework, emphasizing the importance of a predictable, transparent and competitive tax regime to encourage investment and business expansion.
Schehzad emphasized the importance of continued consultation with businesses in shaping economic policies and reforms, saying government-business dialogue was essential for building investor confidence and improving the business environment.
