Subsidies to Public Sector Units Hurt Education in Pakistan

[Riaz Haq]

"...under 1.5% of GDP [is] going to public schools that are on the front line of Pakistan's education emergency, or less than the subsidy for PIA, Pakistan Steel, and Pepco." Pakistan Education Task Force Report 2011

Pakistan has ordered 5 Boeing 777s and 75 train engines for its state-owned companies in a bid to catch up with rising passenger and cargo service demands, according to media reports.

Boeing, the American aerospace giant, has announced the $1.5 billion deal with Pakistan International Airline (PIA) which includes a firm order of five 777-300ER (extended range) jets as well as the purchase rights for an additional five, according to Fox News.

Separately, The News is reporting that Pakistan Railway is purchasing 75 Chinese-made train engines for $105 million.

Highways have now become the most important segment of transport sector in the country, according to the Economic Survey of Pakistan. At the time of Pakistan's independence in 1947, transportation by roads accounted for only 8% of all traffic. Today, it accounts for 92% of national passenger traffic and 96% of freight.

The last decade has seen major competition coming from first-class private bus services now operated on modern motorways in all parts of Pakistan. The best known of these is Daewoo bus service with its comfortable luxury coaches and stewardesses offering meal services. With the construction and expansion of national highways and motorways, the trucking industry has also grown by leaps and bounds in the last few decades.

In mid-90s, Pakistan Railway had 10.45% share of passenger traffic and 5.17% of freight traffic, which has declined to 9.95% and 4.72% respectively by the year 2006-07, according to Economic Survey of Pakistan.

Pakistan Railway has been weighed down by heavy expenses of payroll and rising corruption and incompetence. As a result, a large number of engines are no longer operational and there have been big cuts in service.

After gaining domestic and international traffic market share for several decades after independence, Pakistan International airline has been losing it in recent decades because of serious problems of corruption and mismanagement by the cronies of the ruling politicians. PIA is now losing hundreds of millions of dollars a year while being hit by lean and mean domestic private airlines and international competition from rising Gulf giants like Emirates, Etihad and Qatar Airways.

Today, PIA's employee to aircraft ratio of 450 is more than twice as much as some of its competitors. "Politically motivated inductions have been the major cause of the significant increase in human resource burden in this organization," the State Bank of Pakistan said recently.

Pakistani taxpayers are heavily subsidizing the national airline at the expense of much more crucial public sectors like education. Last year, a Pakistani government commission on education found that public funding for education has been cut from 2.5% of GDP in 2007 to just 1.5% - less than the annual subsidy given to the various PSUs including PIA, the national airline that continues to sustain huge losses.

The latest example of the use of public funds to buy support for the government is Rs 366 million given in "discretionary development funds" as reward to senators for passing the 20th Constitutional Amendment with more than two-third majority, according to Pakistani media reports.

The crux of the issue for the bloated public sector units like PIA, Pakistan Steel Mills and Pakistan Railways is the reprehensible system of political patronage which puts the wrong people in charge of them. The sooner PIA, PR and other PSUs become privatized, the easier it will be to revive them for better service and improved profitability. It will turn them into a source of much needed revenue for the public treasury, just as the denationalization of banks did in the last decade.

From an after-tax loss of Rs. 9.77 billion in 2001 (when MCB, Habib, UBL and Allied were government owned) the earnings of these privatized banks rose to a profit after-tax of Rs. 73.115 billion in 2007. Higher earnings meant increased tax contribution by these banks to the government from Rs 10.8 billion in 2001 to Rs. 33.8 billion in 2007, according to data provided by former State Bank governor Mr. Shahid Kardar.

Even if privatization of the heavily subsidized public sector units does not yield higher tax revenue from them, it will at least free up public funds for more pressing needs like education, health care, energy, water and public infrastructure development.

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[Riaz Haq]

The Citi Bank has managed to arrange $120 million financing from the US EXIM Bank and Islamic Development Bank for overhauling the engines of PIA aircraft by the General Electric Company.This has been disclosed in a meeting of the Citi Bank delegation headed by Country Officer Nadeem Lodhi with Finance Minister Ishaq Dar here on Wednesday.

During the meeting, the Citi Bank team informed the minister that it was after seven years that the US EXIM Bank had undertaken financing activity in Pakistan, which reflected a growing confidence of international institutions or foreign stakeholders in Pakistan’s improved economic stature.The amount, the minister was further told, would be utilised for the overhauling engines of PIA aircraft by the General Electric Company.

http://www.thenews.com.pk/Todays-News-13-36757-US-EXIM-Bank-IDB-to-...$120-million-for-engine-overhaul-to-PIA

[Riaz Haq]

Federal Minister for Railways, Khawaja Saad Rafique on Saturday pointed out that Pakistan Railways requires at least 1,000 locomotives and 12 billion dollars to transform it into a best train service. APP adds: The Pakistan Railways (PR) Saturday signed an agreement was with General Electric (GE) USA to procure 55 locomotives. PR Director Procurement Ziauddin Ahmed Qureshi and Mr Ishfaq representative of General Electric of the United States signed the agreement here at Railways Headquarters. Addressing a press conference Minister for Railways, Khawaja Saad Rafique who oversaw the signing of the agreement said today was a historic day for the Paksitan Railways as it was going to procure locomotives of 4,000 to 4,500 horse power from a company whose export profile was good. In future also all procurements would be made from companies having good export profile and no compromise in this regard would be made he added. He said that the PR was fulfilling its promise of procuring modern items as the GE was one of the best companies in the world. Saad Rafique said out of 55 completely built up (CBUs) locomotives 23 to 24 would be used for the Sahiwal Coal Power project 10 for Bahawalpur project and the remaining would also be used for coal operation. He said that the first shipment of the locomotives would arrive in 16 months. These locomotives he said remained operational more than their age and would return their price in three years. Pakistan Railways was also focusing on manufacturing locomotives in Pakistan and for the purpose it would reach an agreement with a company giveing best offer for transfer of technology (TOT) in Rasalpur factory. The minister said soon Eid operation would be announced. The Green Line train he said was running successfully with 100 per cent occupancy. He said the PR wanted to add value to two to three trains in current fiscal year. The minister said service structure would be made for employees in Grade 1 to 16 adding that companies would be invited through open advertisement for this purpose. To a question he said that the PR had set its priorities and work would be carried out in all areas in steps. PR Chief Executive Officer Javed Anwar and other officials were also present. http://www.thenews.com.pk/article-188646-1000-locomotives,-$12-bn-can-turn-PR-into-best-service:-Rafique

[Riaz Haq]

Next Up for Bid: This Shuttered Pakistan Firm, Pakistan Steel Mills Corp, Is Hard to Sell "Nightmare" http://bloom.bg/1TPJJse via @business

Investors see about two-thirds of the company’s 16,000 workers as unnecessary and most others as incompetent, Zubair, who heads Pakistan’s privatization program, said in an interview. Losses are running at roughly $20 million a month after the firm stopped operating in June because it couldn’t pay its gas bill.
“Finding a potential buyer for Pakistan Steel will be a nightmare because the company is a nightmare," said Zubair, 59, a former IBM executive. “I’ve always sold IBM products which is the easiest -- you’re always going with the best products or services. Now you’re going with one of the worst."
Time is running out for Pakistan to sell stakes in about 40 state-run companies to meet conditions for a $6.6 billion loan package it received from the International Monetary Fund in 2013. Progress is crucial for Prime Minister Nawaz Sharif to show the world that Pakistan is changing as it seeks to attract foreign capital to its financial markets.
Behind Schedule
Asked about Zubair’s “nightmare" comment, Pakistan Steel spokesman Syed Abdul Hafiz Shah said the losses began piling up after the 2008 financial crisis.
“Production is zero and liabilities can’t be paid, so obviously it’s difficult to run," Shah said. “It’s up to the government what it decides. We will have to follow it."
The privatization program is already behind schedule and facing resistance among unions and opposition political parties. Five transactions yielding $1.7 billion have been completed so far, and deadlines are being pushed back.
Zubair emphasized that the privatization push is still on track. He said that legal and political hurdles have delayed the timeline for asset sales by only about three months.
“This is a very critical stage," Zubair said at his office on Dec. 4. “This is just the stage where the next momentum will be seen by the people of Pakistan."
Strategic sales are more complicated and time consuming than capital market transactions, according to Mohammed Sohail, chief executive Topline Securities Ltd.
“The challenge is not the opposition parties or people opposing privatization," Sohail said by phone from Karachi. “The situation of these companies is so bad that it will be difficult to find a buyer."
Airline Bids
The three companies seen as benchmarks for success are Pakistan Steel, national carrier Pakistan International Airlines Co. and Faisalabad Electricity Supply Co., known as Fesco. All have been earmarked for privatization for more than two decades.
A presidential decree issued last week repealed the 1956 law setting up Pakistan Airlines, removing a hurdle to selling a 26 percent stake in the national carrier by August. China’s Hainan Airlines Co. is among companies that have expressed interest, Zubair said, adding that he’ll also seek bids from Emirates, Etihad Airways PJSC and Qatar Airways Ltd.
Fesco is profitable and will be the easiest of the three to sell despite having 9,000 outstanding legal cases and spotty financial documentation, Zubair said. He plans to unload a 74 percent stake by May, a sale he hopes will generate momentum for other power producers that are in much worse shape.
Political Decisions
Pakistan Steel is more complicated. Established in 1973 to supply a nascent manufacturing sector, the company stopped operating in June after gas supplies were cut off due to mounting debts, according to Shah, the company’s spokesman. Its workforce has shrunk to 14,000 as those who hit retirement age aren’t replaced, he said.
The cabinet decided to allow the government of Sindh province -- where Pakistan Steel is based -- to have the first shot at the 74 percent stake up for sale. If Sindh doesn’t express interest by Dec. 15, Zubair said he would write to the cabinet and look for other buyers.

[Riaz Haq]

China To Invest $8.5 Billion To Upgrade Pakistan's Rail Network, Build Gas Pipeline: Report

http://www.ndtv.com/world-news/china-to-invest-8-5-billion-to-upgra...


China will invest about USD 8.5 billion to upgrade Pakistan's rail network and to build a key gas pipeline with Iran to meet the country's energy needs, a media report said today.

The Central Development Working Party (CDWP), a Pakistan body to authorise major projects, yesterday approved USD 10 billion worth two projects. China will provide loans equivalent to 85 per cent (USD 8.5 billion) of the cost of each project.

The cost of upgrading of Pakistan Railways existing Mainline (ML-I) and establishment of a dry port near Havelian is USD 8.2 billion, which the Chinese government will finance with a USD 7 billion concessionary loan, The Express Tribune reported.

This project is part of USD 46 billion China-Pakistan Economic Corridor (CPEC) package and is covered under the CPEC Framework Agreement, signed during the April 2015 visit of Chinese president to Pakistan.

The estimated cost of Gwadar-Nawabshah LNG Terminal & Pipeline project, also cleared in principle, is USD 2 billion including USD 1.4 billion Chinese loan. This project is strategically important for Pakistan as it will eventually link the country's gas network with Iranian system.

"The exact costs of both the projects will be firmed up after finalising financing arrangements," CDWP Chairman and Minister for Planning, Ahsan Iqbal, said.

"After finalisation of the financing arrangements, both the projects will be taken to the Executive Committee of National Economic Council (Ecnec) with firmed up cost for final approval," he said.

At present, Pakistan Railways is picking up less than 4 per cent of the traffic volume of the country, which the government intends to increase to at least 20 per cent by 2025.

The project is planned to be completed in two phases in five years by 2021 on engineering, procurement and construction (EPC) mode. Phase-I will be completed by December 2017 and Phase-II by the year 2021.

The CDWP also cleared Gwadar-Nawabshah LNG Terminal and Pipeline Project at an estimated cost of roughly USD 2 billion or Rs. 206.6 billion.

The Chinese Exim bank will provide 85 per cent of the financing under government-to-government mode. The EPC contract will be given to a Chinese company. The pipeline project will be included in the CPEC framework.

The key objective of this project is to overcome gas shortages by importing LNG and its transportation through Gwadar-Nawabshah pipeline.

In phase-I, the pipeline will follow the coastal pipeline corridor, which was formally established for the Iran-Pakistan gas pipeline. In phase-II, a 90-kilometer patch will be constructed from Gwadar to Pakistan-Iran border to tie the national network with Iranian system.

[Riaz Haq]

#Pakistan to launch $US 8.2bn upgrading #railway track project. International Railway Journal #CPEC http://www.railjournal.com/index.php/main-line/pakistan-to-launch-d... … via @railjournal

THE Pakistan government has approved a $US 8.2bn project to upgrade the 1872km Karachi - Peshawar main line by 2021, 85% of which will be funded by a concessionary loan from China the terms of which will now be negotiated.

The project is part of the $US 46bn China-Pakistan Economic Corridor, a framework agreement for which was signed in April 2015 during a visit to Pakistan by China's president Mr Xi Jinping.

The work will be carried out in two phases, with the first due for completion in December 2017 and the second in 2021. The project will include track relaying, and upgrading of bridges, tunnels, and culverts, with the objective of increasing the axleload from 22.8 tonnes to 25 tonnes. A dry port will also be constructed at Havelian and the 55km line from there to Taxila will be upgraded.

Pakistan Railways currently has a 4% share of national traffic and the government wants to increase this to at least 25% by 2025.

[Riaz Haq]

#ADB to loan #Pakistan $600m for structural reforms to boost performance and financial stability of PSUs http://www.publicfinanceinternational.org/news/2016/06/adb-agrees-6... … via @pfintl

“This assistance will give the government the ‘fiscal breathing space’ it needs to proceed with measures to create more sustainable business, delivering more efficient and cost-effective services to the Pakistani public, and will eventually free up public funds for vital social sector spending.”

At present, the Pakistan government owns 191 public sector enterprises employing around 420,000 workers. But according to the ADB, a fiscal consolidation drive to improve federal finances has prevented the government from making important reforms in this area, such as reducing pension liabilities.

ADB financing will be used to create a cost fund to “manage huge unfunded pensions and other retirement liabilities of workers”, which present a “serious threat” to Pakistan’s public sector, the bank said.

Power distribution companies and Pakistani Railways are also among the organisations that need “immediate financial support” to initiate reforms. 

Pakistani Railways will receive support to strengthen auditing and accounting, and funding will also be used to improve the transparency of the public sector and strengthen corporate governance.

This funding is part of a coordinated donor packaged arranged by the Asian Development Bank, the International Monetary Fund and the World Bank. The programme consists of two batches of $300m and will run until 2018.

[Riaz Haq]

#Pakistan Railways poised to get massive funding from #CPEC and #CAREC. #China #CentralAsia http://www.pakistantoday.com.pk/?p=559603 via @ePakistanToday

After decades of neglect, a silver lining is on the horizon for Pakistan Railways as it may be able to attract multi-billion dollar investment for the upgradation as well as deployment of new railway infrastructure across the country under two regional economic unions, the Central Asia Regional Economic Cooperation (CAREC) and China Pakistan Economic Corridor (CPEC), to link Central Asia and China with Pakistani ports of Karachi and Gwadar.

An official source said that the Asian Development Bank (ADB) has started the process to assess the financial needs for upgradation of 461 km main line (ML-1) between Lahore and Peshawar, under its CAREC Railway Connectivity Investment Programme. The financing is likely to start flowing form next year.

The Ministry of Railways has already shared plans, under early harvest projects by 2020, to upgrade Karachi-Peshawar main line (ML-1) and extension of ML-2 from Jacobabad to Gwadar via Basima to both CAREC and CPEC. If financing was available, the projects would be completed in relatively short time as the Pakistan Railways has technical expertise to execute the projects, he added.

ADB will be providing multi-tranche financing facility (MFF) to make the railway system more efficient and competitive. Improved railway corridor of Lahore-Peshawar will improve Pakistan Railways’ institutional efficiency. Financial assistance will also be provided for Railways’ modernization, IT-based accounting system and transforming and migrating accounting data into the new accounting system.

Under the plan, 411 km railway track between Lahore-Peshawar section of ML-1 will be upgraded and dualised together with new signaling and telecommunications system, including power supply for these systems, and upgraded passenger facilities at Lahore, Rawalpindi, and Peshawar stations. A 53-km section in the hilly area from Kaluwal to Pindora will have to be realigned and dualised. Except for realignment sections in the hilly tract, it is likely that all the work for rehabilitation and upgradation of the physical infrastructure will be limited to the PR-owned right of way.

Except for Pakistan, railways in all CAREC countries have more freight carriers than passenger tariff. CAREC railways have increased freight traffic volumes which shows the large potential for PR to freight forward to and from CAREC countries. Domestic market is large in Pakistan, Uzbekistan, Kazakhstan and China.

In the past, the railways infrastructure plans always received a cold shoulder from the government, but now the situation has changed as multilateral institutions are interested in linking Pakistani ports with China and Central Asia. Now the government wants to attract investment in railways infrastructure and China is asked to finance upgradation of strategically located ML-1 which connects major population centers in three provinces.

Under CPEC, Pakistan has shared Phase-I (Early Harvest Projects) upgradation of ML-1 (Karachi-Peshawar and Taxila to Havelian) and construction of New Dryport at Havelian (Buldher). In medium term, Phase-II upgradation of ML-2 and extension of ML-2 (Gwadar to Jacobabad via Basima) is proposed. The long term Phase-III seeks establishment of Havelian-Khunjrab-Kashghar rail link.

The source said Pakistan has shared plans to link the Gwadar port Kandahar, Kabul and Dushanbe. The second plan is to link Gwadar with Quetta and onwards to China. He said Pakistan Railways has prepared plans on rail link between Gwadar port and Mastung, Chaman to Kandahar rail link and rail lines between Kandahar and the Tajik border are also planned.

[Riaz Haq]

#Pakistan Railways poised to get massive funding from #CPEC and #CAREC. #China #CentralAsia http://www.pakistantoday.com.pk/?p=559603 via @ePakistanToday

After decades of neglect, a silver lining is on the horizon for Pakistan Railways as it may be able to attract multi-billion dollar investment for the upgradation as well as deployment of new railway infrastructure across the country under two regional economic unions, the Central Asia Regional Economic Cooperation (CAREC) and China Pakistan Economic Corridor (CPEC), to link Central Asia and China with Pakistani ports of Karachi and Gwadar.

An official source said that the Asian Development Bank (ADB) has started the process to assess the financial needs for upgradation of 461 km main line (ML-1) between Lahore and Peshawar, under its CAREC Railway Connectivity Investment Programme. The financing is likely to start flowing form next year.

The Ministry of Railways has already shared plans, under early harvest projects by 2020, to upgrade Karachi-Peshawar main line (ML-1) and extension of ML-2 from Jacobabad to Gwadar via Basima to both CAREC and CPEC. If financing was available, the projects would be completed in relatively short time as the Pakistan Railways has technical expertise to execute the projects, he added.

ADB will be providing multi-tranche financing facility (MFF) to make the railway system more efficient and competitive. Improved railway corridor of Lahore-Peshawar will improve Pakistan Railways’ institutional efficiency. Financial assistance will also be provided for Railways’ modernization, IT-based accounting system and transforming and migrating accounting data into the new accounting system.

Under the plan, 411 km railway track between Lahore-Peshawar section of ML-1 will be upgraded and dualised together with new signaling and telecommunications system, including power supply for these systems, and upgraded passenger facilities at Lahore, Rawalpindi, and Peshawar stations. A 53-km section in the hilly area from Kaluwal to Pindora will have to be realigned and dualised. Except for realignment sections in the hilly tract, it is likely that all the work for rehabilitation and upgradation of the physical infrastructure will be limited to the PR-owned right of way.

Except for Pakistan, railways in all CAREC countries have more freight carriers than passenger tariff. CAREC railways have increased freight traffic volumes which shows the large potential for PR to freight forward to and from CAREC countries. Domestic market is large in Pakistan, Uzbekistan, Kazakhstan and China.

In the past, the railways infrastructure plans always received a cold shoulder from the government, but now the situation has changed as multilateral institutions are interested in linking Pakistani ports with China and Central Asia. Now the government wants to attract investment in railways infrastructure and China is asked to finance upgradation of strategically located ML-1 which connects major population centers in three provinces.

Under CPEC, Pakistan has shared Phase-I (Early Harvest Projects) upgradation of ML-1 (Karachi-Peshawar and Taxila to Havelian) and construction of New Dryport at Havelian (Buldher). In medium term, Phase-II upgradation of ML-2 and extension of ML-2 (Gwadar to Jacobabad via Basima) is proposed. The long term Phase-III seeks establishment of Havelian-Khunjrab-Kashghar rail link.

The source said Pakistan has shared plans to link the Gwadar port Kandahar, Kabul and Dushanbe. The second plan is to link Gwadar with Quetta and onwards to China. He said Pakistan Railways has prepared plans on rail link between Gwadar port and Mastung, Chaman to Kandahar rail link and rail lines between Kandahar and the Tajik border are also planned.

[Riaz Haq]

A political machine is a political group in which an authoritative boss or small group commands the support of a corps of supporters and businesses (usually campaign workers), who receive rewards for their efforts. The machine's power is based on the ability of the workers to get out the vote for their candidates on election day.

Although these elements are common to most political parties and organizations, they are essential to political machines, which rely on hierarchy and rewards for political power, often enforced by a strong party whip structure. Machines sometimes have a political boss, often rely on patronage, the spoils system, "behind-the-scenes" control, and longstanding political ties within the structure of a representative democracy. Machines typically are organized on a permanent basis instead of a single election or event. The term may have a pejorative sense referring to corrupt political machines.[1]

The term "political machine" dates back to the 20th century in the United States, where such organizations have existed in some municipalities and states since the 18th century. Similar machines have been described in Latin America, where the system has been called clientelism or political clientelism (after the similar Clientela relationship in the Roman Republic), especially in rural areas, and also in some African states and other emerging democracies, like postcommunist Eastern European countries. Japan's Liberal Democratic Party is often cited as another political machine, maintaining power in suburban and rural areas through its control of farm bureaus and road construction agencies.[2] In Japan, the word jiban (literally "base" or "foundation") is the word used for political machines.

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Theodore Roosevelt, before he became president in 1901, was deeply involved in New York City politics. He explains how the machine worked:

The organization of a party in our city is really much like that of an army. There is one great central boss, assisted by some trusted and able lieutenants; these communicate with the different district bosses, whom they alternately bully and assist. The district boss in turn has a number of half-subordinates, half-allies, under him; these latter choose the captains of the election districts, etc., and come into contact with the common heelers

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The corruption of urban politics in the United States was denounced by private citizens. They achieved national and state civil-service reform and worked to replace local patronage systems with civil service. By Theodore Roosevelt's time, the Progressive Era mobilized millions of private citizens to vote against the machines


https://en.wikipedia.org/wiki/Political_machine

[Riaz Haq]

#Pakistan aims to sell national #airline #PIA before election.

https://www.reuters.com/article/us-pakistan-airlines-pakistan-intl/...

Pakistan International Airlines (PIAa.KA)(PIA), hemorrhaging money and losing market share to Gulf-based rivals such as Etihad and Emirates, has been hit by management turmoil in recent years and a 2016 plane crash that led to 47 deaths.

The privatization of loss-making entities that were draining the exchequer was a key priority for the Pakistan Muslim League-Nawaz (PML-N) party when it swept to power in 2013.

PIA was among 68 state-owned companies earmaked for privatization in return for a $6.7 billion International Monetary Fund package that helped Pakistan to stave off a default in 2013.

Despite some initial success, the process stalled in 2016 after staff protests caused havoc with PIA operations and the government passed a law that effectively made it impossible to privatize the airline.

But Aziz, chairman of the Privatisation Commission, told Reuters that new plans have been drawn up to sell off PIA and he would take the proposals to the cabinet committee on privatization, chaired by Prime Minister Shahid Khaqan Abbasi.

“Next step would be going to the cabinet committee ... and that’s imminent, maybe even next week,” Aziz said in his Islamabad office this week.

The new plans focus on splitting up the carrier, with the core airline business being separated from vast peripheral operations such as catering, hotels and maintenance, Aziz said. The core airline would then be sold.

HEAVY LOSSES
But to complete the transaction, Aziz said, the government would have to pass laws in parliament to reverse the 2016 legislation that converted PIA into a limited company and effectively barred the government from giving up management control.

The impetus to sell PIA has grown as the airline has piled up huge losses estimated by its former CEO in March at about $30 million a month. Total debt stood at 186 billion rupees ($1.8 billion) at the end of 2016.

When asked how soon could a buyer could acquire PIA, Aziz said: “Tomorrow morning. If you have the money, come and buy it.”

Both Emirates and Etihad had shown interest in buying PIA before the government backed down from privatization in 2016, the English-language Express Tribune newspaper reported, citing an unnamed official.

Analysts have been skeptical about the government’s ability, or willingness, to take on powerful unions and embark on a privatization process so close to general elections likely in July or August.

Aziz said that, owing to time restraints ahead of the elections, the privatization commission will focus on one state company per sector, including a bank and an energy company.

He added that there has been “huge interest” in buying Pakistan Steel Mills, once the pride of Pakistan’s industrial output but now shut and bleeding cash.

“We will get runs on the board, but the real challenge is to bring to fruition the two big animals: one is PIA and the other one is Steel Mills,” Aziz said.