Pakistan Instability To Hinder Privatisation Plans

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On February 17 the Pakistani government approved the sale of up to 26% stake in 21 state-owned enterprises. Although no timeline has been set for the privatisations, CFW expects the government to move quickly as it requires the capital. That said, we caution that the country's instability may deter investors. The privatisations will form part of the government's efforts to reduce its mounting debt. Indeed, Pakistan's Privatisation Ordinance said that 90% of the proceeds from the stake sales will be used for retiring debt and the remainder for reducing poverty.