Privatisation Challenges.

The World Bank's recent concerns about Pakistan's approach to privatising state: owned enterprises (SOEs) are not to be taken lightly. The Inter: Governmental Commercial Transactions Act of 2022, allowing the government to offer shares of SOEs to foreign governments, has raised red flags. While this approach may seem like a quick fix to Pakistan's economic woes, it comes with a plethora of potential pitfalls.

Transparency and oversight should be the cornerstones of any privatisation process. Without them, we risk legal disputes, opacity, and a lack of accountability. The World Bank's recommendation of public offerings is a sensible one. Public offerings can act as checks and balances, ensuring that the privatisation process remains fair and equitable.

Pakistan's state: owned enterprises have become a financial burden due to their declining profitability. Addressing this issue through a wellplanned privatisation strategy is paramount. However, past privatisation attempts have been hindered by various challenges, including economic volatility, judicial activism, litigation, and political resistance.

It's essential for Pakistan to foster a stable macroeconomic environment to attract investors. Revamping regulatory bodies and implementing necessary safeguards are also crucial steps in the right direction. The perception of Pakistan as a trustworthy business partner has been marred by certain judicial decisions, deterring foreign investment. Rebuilding this trust is...