ISLAMABAD: The federal cabinet has allowed selling of state land to pay off the government’s ballooning debt that has already crossed over Rs27 trillion. However, capacity constraints of the Ministry of Privatisation and rigorous regulations may slow down the sell-off process.
Prime Minister Imran Khan directed to set up an Asset Management Cell at the Privatisation Commission aimed at fast-tracking the process to sell the real estate assets, according to the officials who attended the meeting.
It will be for the first time since its creation about 30 years ago that the Privatisation Commission will sell real estate that is owned by the federal government ministries and departments at a large scale.
It may be a risky venture, as valuation and assessment of government land and buildings would not be an easy task at a time when bureaucracy remains cautious due to the National Accountability Bureau (NAB).
The PM also directed that each ministry and division should send a list of at least three properties that are free and clear of all encumbrances to the Privatisation Commission to put them on sale, said the officials.
The decision to sell the state land has been taken to pay off the increasing public debt that stood at Rs27.1 trillion as of end of January. During the first half of this fiscal year, the federal government spent 36 per cent of its total budget on paying interest on domestic and foreign debt.
The plan faces obstacles in the shape of weak capacity of the Privatisation Commission, rigorous regulations that are aimed at ensuring transparency, and a dispute over the ownerships of properties between the federal and provincial governments.
