ISLAMABAD: In a last-ditch effort to avert default by urgently selling state assets to foreign nations, the federal cabinet has adopted an order to forego all required formalities and also abolish regulatory inspections, such as the applicability of six pertinent laws.
According to a copy of the Inter-Governmental Commercial Transactions Ordinance 2022, the Centre is now able to give legally enforceable directives to the provincial governments regarding land acquisition.
The ordinance has not yet been signed by President Arif Alvi. According to the decree, the government has also forbidden the national courts from hearing any lawsuits challenging the sale of assets and stock in government-owned corporations to other nations.
In order to generate $2 billion to $2.5 billion and prevent the impending default, the federal cabinet approved the decree on Thursday to sell shares of government-owned power plants and oil and gas enterprises to the UAE.
Due to Islamabad’s inability to repay prior loans, the UAE had in May declined to provide cash deposits and requested that its firms be made available for investment instead.
This week, Finance Minister Miftah Ismail stated that one privatization transaction typically takes 471 days to complete. In order to urgently generate finances, he had stressed that the administration had to quickly reach agreements with other nations.
The International Monetary Fund (IMF) has imposed a requirement that Pakistan obtains $4 billion from friendly nations to close the financing deficit before presenting its case to the board.
The objective of this item was not stated by the federal law minister.
The seriousness of the difficulties the government is dealing with is demonstrated by the rupee’s 8.3 percent loss in value this week, which is the largest decline since November 1998.