Pakistan has committed to amending its Sovereign Wealth Fund (SWF) law to meet the International Monetary Fund’s (IMF) requirements, preventing the direct sale of state-owned enterprises (SOEs) to foreign entities. This assurance comes as the finance ministry missed the March deadline for submitting these amendments to parliament.
The IMF has conditioned the release of two loan tranches, worth $1.2 billion, on these legal changes. The amendments will downgrade the SWF’s status to a holding company, limiting its role to managing SOEs and attracting foreign direct investment through strategic partnerships.
The SWF Act, enacted in 2023, initially allowed the fund to sell shares of profitable entities like Oil and Gas Development Company and Pakistan Petroleum Limited. However, the IMF objected to its governance structure and the lack of competitive processes for asset sales.
Finance Minister Muhammad Aurangzeb has assured that the amendments will comply with international standards, ensuring transparency and non-discrimination in asset sales. Revenues from the fund will be directed to the government, and the fund will not retain or borrow money independently.
The government also plans to ensure merit-based appointments to the SWF’s board and introduce accountability mechanisms. The only successful privatization so far has been Pakistan International Airlines, with further delays in power sector privatization.
Published in SouthAsianDesk, May 5, 2026
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