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Also, the power sector subsidies dropped to 0.6pc of GDP from 2pc of GDP and outages for industrial
sector dropped from nine hours to one hour per day.
Electricity outages for urban consumers dropped to five hours per day from eight hours in 2013.
Based on these outcomes, the IMF has stressed that restructuring and attracting private sector
participation in ailing PSEs would be key to restoring their financial viability to reduce fiscal costs.
While planned privatisation transactions were scaled back early this year owing to political opposition
and widespread strikes, the authorities reiterated their commitment to attracting private sector
participation in the PSEs while continuing efforts to contain their losses.
The IMF noted that the relevant legislation required the government to keep majority shares and
management control of PIA, but the government committed to attract private sector participation in the
company and finalise the transaction structure for a minority sale by the end of the year.
In parallel, measures to reduce PIAs financial and operating costs would continue to be implemented.
Secondly, following inconclusive discussions with a provincial government over transfer of PSM
ownership, the government has resumed the privatisation process for the company and aims to conclude
the bidding process by June 2017. The authorities will also continue to implement measures to limit
PSMs financial losses.
The IMF praised improvement in the Pakistan Railways revenue performance and the governments
commitment to move forward with its restructuring plan.
Published in Dawn, October 17th, 2016