ISLAMABAD: Finance Minister Miftah Ismail on Wednesday said the government was amending the laws to enable the sale of shares of listed state-owned entities (SOEs) with a buyback option to friendly countries on a government-to-government (G2G) basis and help bridge a part of $4bn financing gap estimated by the International Monetary Fund (IMF) for the current fiscal year.
Speaking at a seminar on SOEs corporate governance, the minister also said the ban on imports would be lifted in a couple of weeks and all prior actions agreed upon under the staff-level agreement with the IMF had been completed and there was no more hitch to be able to get the first tranche in the later part of August.
Without naming the Inter-Government Commercial Transaction Act 2022 that the federal cabinet approved later in the day, the finance minister said the law was necessary because the existing privatisation law did not allow such commercial transactions on a G2G basis.
An official statement after the cabinet meeting said the cabinet approved ‘Inter-Government Commercial Transaction Act 2022’ presented by the ministry of law and justice and referred it to the relevant standing committee of the parliament. The cabinet was informed that the law would provide confidence to foreign investors and also increase foreign investment on a G2G basis in developmental agreements. The meeting was told that it was for the first time that practical step was being taken to protect G2G agreements and make them transparent.