PAKISTAN

Active privatisation list: Six additional public sector entities added

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Recorder Report Published May 3, 2024  

ISLAMABAD: The federal government, on Thursday, added six additional public sector entities in active privatisation list to curtail annual losses as well as generate revenue.

The six new suggestions for the privatisation list include Postal Life Insurance Company Limited (PLICL), Zarai Taraqiati Bank Ltd, Utility Stores Corporation (USC), Jamshoro Power Company Limited (GENCO-I), Lakhra Power Generation Company Limited (GENCO-IV), and Hazara Electric Supply Company (HAZECO).

The 218th meeting of the Privatisation Commission Board, was held Thursday under the chairmanship of the Federal Minister for Privatisation, Investment and Communication, Abdul Aleem Khan gave the approval.

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The board considered the recommendations of all federal ministries for the Privatisation Programme 2024-29 and discussed in detail the various issues associated with the privatisation programme. A total of 21 entities have been recommended by the ministries for inclusion in the privatisation list, out of which, 15 entities are already in the active list.

The board gave further approval for extension of the date for submission of interests for the divestment of Pakistan International Airlines Corporation Limited (PIACL). The board also considered the recommendations of all the ministries of the Federal Government for the Privatisation Programme (2024-29) and approved their submission to the Cabinet Committee on Privatisation (CCoP) with its observations. Approval was also given to the proposed amendments in PC (Hiring of Financial Adviser), Regulations, 2018.

The board accorded approval for extension in the date for submission of interests on the request of interested parties. Ten entities have already shown their interest for the acquisition of the PIACL shares. The invitation for expression of interest in acquiring the majority stakes in PIACL was advertised both locally and internationally on 2nd and 3rd April 2024.

The board observed that the ministries had described many SOEs as strategic and essential but the decision in this regard can only be taken by the CCoSOE. The board directed that the ministries shall place their recommendations before the CCoSOE and the entities not deemed strategic or essential may then be placed on privatisation list.

The board approved the proposed amendment in the PC (Hiring of Financial Adviser), Regulations, 2018, to enable the Privatisation Commission to prequalify financial advisors so that the time required for appointment of financial advisors for transactions can be reduced.

Copyright Business Recorder, 2024