Recently Pakistan government passed an ordinance. The ordinance states that the government of Pakistan can now sell their country’s assets to any foreign government. The sale of assets will happen to prevent the country from defaulting. It’s not privatization. As in privatization, any private country can buy stacks of any government authority. But here the deal will happen between government to government.
Now governments of the UAE, Saudi Arab china, etc. can buy any government authority like gas pumps, ports, roadways, or airports of Pakistan. The ordinance includes one strange that is no one can fill any kind with petition in court over any deal. This happens because they know when they will sell anything. Then the public of Pakistan will definitely go to court. So they closed that door, to protect their continuity.
I have seen this kind of ordinance for the first time in which the judiciary is set out of any national issue. Is this really a part of democracy? But the reality now is that the government can sell anything.
What Pakistan can sell?
There was an option in front of Pakistan earlier. That they can sell Gwadar seaport to China and in exchange, they will get enough money. Even that is enough, so they can get out of their economic crisis for a time. But they had already lost this chance.
In 2017-18 they put Gwadar seaport on lease for forty years to a Chinese company. If they don’t put that on lease then easily Pakistan can sell the port’s stack and can save itself. In 2019 top US general said that Pakistan owes around USD 10 billion debt to China for Goward port. This will be given to China because they had dome construction in Gwadar port. Both nations still doesn’t disclose the amount of the port deal.
Pakistan still have many ports, but they are not important like Gwadar. So China or any country will not buy any port until it will on have discount.
Now, another option can be Airports. But in 2020 Pakistan proposed this deal to the UAE, Saudi Arab, and Qutar to buy Seventy percentage stack of Airports. But all nations reacted rudely and refused to buy. As like, they didn’t want to put thier hand in all this.
Maybe the reason for rejection of purchase is because of less economic activity. As there is no economic activity happening in Pakistan right now through their airport. If again no one is interested then may China will buy it.
The third option can be motorways. It doesn’t mean the part of the land. They can’t sell it, but they can put it on lease. It’s like the government can’t take money from people directly. So when the roadways will be under any other authority than the owner can increase the price of the toll plaza as much as they can. And if people will complain then they will say it’s not under them.
What all this will result? So the answer is simple it will hit the common people directly. This will more inflation. According to Pakistan’s annual inflation report, the country holds a record mark of inflation of about 20.13% in June. And all this indicates there will be more increase. It will be hard for Pakistan to sell its assets in such a way that the economy will not collapse.
But it’s clear, that China will definitely involve in this issue. And in the future will hold a major part in stacks of Pakistan assets. This ordinance will change Pakistan.