The Pakistani government has decided not to privatize two important LNG (liquefied natural gas) power plants as part of their agreement with the International Monetary Fund (IMF).

These power plants, namely Haveli Bahadur Shah and Baloki Power Plant, will remain under government ownership during the caretaker administration’s term.

Sources from the Power Division have indicated that the complex process of privatizing these power plants cannot be completed during the caretaker government’s tenure.

These two power plants had previously been discussed for privatization as part of the IMF’s recommendations to privatize government-owned enterprises, including power facilities.

The IMF had suggested that privatizing these power plants could help boost foreign reserves.

However, due to the timing constraints of the caretaker government, this decision will be deferred.

The responsibility to decide on the privatization of these power plants will fall to the next elected government through the Privatization Commission.

This development has implications for the economic review with the IMF, as the decision not to privatize may result in the IMF making stricter demands.