Pakistan To Sell Unused Land To Attract Investment. In yet another desperate attempt to generate funds to support the country’s ailing economy, Pakistan’s government decided at the Expo 2020, Dubai, to sell the state-owned unused property.
The decision was taken at a meeting on Wednesday in Islamabad by Pakistan Prime Minister Imran Khan.
The main objective of selling previous unused state assets is to attract foreign and overseas investors from India to Pakistan. The funds raised by the planned sale will be spent on education, housing, health, and food-related public welfare schemes.
Prime Minister Imran Khan was told during the meeting on the abandoned state properties owned by the various government departments that 32 private properties had been found by different ministries.
“At Expo 2020 in Dubai, these unused state assets will be sold to attract foreign and Pakistani investors to buy them,” told the Prime Minister Rizwan Malik, Pakistan’s Secretary of Privatisation. Expo 2020 Dubai, which will last six months, is scheduled to start on October 20, 2020. This means Pakistan will have to wait more than 10 months to realize its government asset sales plan.
Imran noted that despite having assets worth billions of rupees, government institutions are carrying annual losses of billions of rupees, Dawn news reported.
“The use of property worth billions of rupees would help generate funds that the government will spend on welfare schemes such as universities, colleges, hospitals. It’s an important component of the policy of the government,” Imran said.
“Sadly, past governments have done criminal negligence because they have not used these important resources. Despite billions of rupees’ assets, different institutions of the federal government bear annual losses of billions of rupees,” he added.
Prime Minister Imran warned that he would take stern action against government officials who would not recognize unused assets or try to hamper the move by the government.
He also instructed the Asset Management Committee and federal ministries as well as provincial governments within a week to address all issues related to specified assets and immediately enforce the government decision.
Secretary of the Privatization Commission Rizwan Malik said that each ministry was charged with identifying at least three such properties under federal cabinet decisions taken early this year. In the first step, so far, 32 such assets had been defined by different ministries.
A financial advisor’s services were hired in October to review these assets and give final shape in this regard to the potential process.
Prime Minister Imran Khan’s government took international loans worth $10.4 billion in its first year of office, 46 percent of which were short-term, expensive commercial loans, secured at interest rates of up to 5.5 percent, said The Express Tribune.
The most expensive commercial loans were obtained from Chinese banks contracting at the six-month Shanghai Interbank Offered Rate (Shibor) plus 2.5 percent, according to information presented to the National Assembly by the government of Pakistan Tehreek-e-Insaf (PTI) on Wednesday.
According to official statistics, from August 18 to September 30, 2019, the PTI government received loans of $10.4 billion from various countries and organizations. The PTI government took $4.8 billion out of the $10.4 billion from seven commercial banks, equal to 46 percent of the total borrowing. News report on Pakistan To Sell Unused Land To Attract Investment.