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Inflation and declining foreign currency reserves have brought Pakistan to the verge of economic collapse. The nation’s debt has increased to an all-time high. The Islamic Republic is burdened with a mountain of unbearable debt.<\/p>\n
According to media reports citing sources, the Pakistani government has decided to offer Qatar a 51% stake in Pakistan International Airlines (PIA) and the Roosevelt Hotel in New York while the prime minister is in Doha on a two-day official visit.<\/p>\n
According to reports, as part of its support for the cash-strapped South Asian nation, the gas-rich Gulf state of Qatar plans to invest $3 billion from its sovereign wealth fund in Pakistan’s key economic sectors.<\/p>\n
The main causes of Pakistan’s public debt explosion were lower-than-targeted tax collection, a sharp currency devaluation, higher interest rates, higher spending, losses suffered by state-owned companies, and debt mismanagement.<\/p>\n
Let’s take a look at the various offers the Pakistani government has made to private companies to pay off its massive debt load.<\/p>\n
Pakistan is to sell majority stakes in state-run airlines to Qatar\u00a0<\/strong><\/p>\n According to media reports citing sources, the Pakistani government has decided to offer Qatar a 51% stake in both the Pakistan International Airlines (PIA) and the Roosevelt Hotel in New York. They added that after subtracting the liabilities, the government might receive at most $500 million to $600 million, which was politically challenging to present to the public as the best price.<\/p>\n Privatisation of Pakistan Steel Mill<\/strong><\/p>\n On-site inspections of the Pakistan Steel Mill started on July 28. On July 27, the Privatization Commission (PC) announced that meetings with pre-qualified parties for the sale of Pakistan Steel Mills were underway. The companies also conducted\u00a0on-site inspections and due diligence procedures.\u00a0<\/p>\n It was one of the largest companies on the list of active privatisation\u00a0and had been causing the national exchequer significant losses since 2015.<\/p>\n Sale of Balloki and Haveli Bahadur Shah Power Plant<\/strong><\/p>\n The Pakistan government has decided to sell the Balloki and Haveli Bahadur Shah power plants to a Gulf nation for $2 billion after failing to receive financial support from friendly nations (UAE).<\/p>\n The ordinance for the sale of the Balloki and Haveli Bahadur Shah power plants may be introduced after the National Assembly session.<\/p>\n According to sources, the total funding required to build both plants would be $2 billion when company shares are sold.<\/p>\n Not only the loss-making companies, the Pakistani government is selling profitable Pakistani company OGDCL to foreigners.<\/p>\n Pakistan\u2019s cabinet has also approved the Inter-Governmental Commercial Transactions Ordinance, 2022 to bypass all procedures and abolish regulatory checks for the emergency sale of the state\u2019s assets to foreign countries.<\/p>\n It will enable the government of Prime Minister Shehbaz Sharif to sell public property to foreign organisations and governments without restriction.<\/p>\n WATCH WION LIVE HERE<\/strong><\/p>\n