The Tongan Post Office is on track to be corporatised by July and five government-owned businesses are expected to be privatised before the end of the year.
Finance Minister Minister Afu'alo Matoto says the five government-owned businesses are currently being prepared for privatisation. They include the Leilola Duty Free shop, The Tonga Tapu Machinery Pool, and parts of Tonga Timber.
Mr Matoto says the privatisations are driven by a desire to reduce Government expenditure.
He says he doesn't expect members of the Royal family to bid for any of the privatised state assets.
"We are hoping that members of the Royal Family will not be involved in this, particularly those who are directly in line for the Monarchy."
Mr Matoto says no decision has yet been made on whether to privatise the Post Office.