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Former CEO Engro corporation and PTI leader Asad Umar, the next finance minister of the county revealed in an interview that all state-owned organizations would be transferred into a special wealth fund, during the initial 100 days of the newly elected government.
Asad believed that the country would have to consider privatization drive on a larger scale as it seeks to obtain the necessary funds to recover from the economic crises that the nation seems to be lingering around. Asad is high on hopes that the formation of wealth fund will assist persuade the IMF to agree to a favorable deal for the country. Moreover, the upcoming finance minister also declares this fund as the first step towards privatization by the new government.
A total of around 200 companies would be effectively removed from government control and placed in this wealth fund, which shall be led by people from the private sector, and managed by the government from an arm’s length. The funds’ job would be to cut the losses of the companies in that fund and reduce their debts.
Asad Umer cited the huge debts of state-owned enterprises. According to him, the staggering debt level of Rs406 billion that PIA has been reporting and stressed on the need to reduce those debts.
to recuperate this, the new PTI government would have to develop an effective plan immediately, he added.
Asad reveals that the government would also be considering other options, including raising money from overseas Pakistanis, issuing new Sukuk (Islamic) bonds and requesting Saudi Arabia to defer our oil payments.