Privatisation
Commission’s Board meeting was held today in Islamabad. The PC Board
congratulated Federal Minister for Privatisation, Mr. Danyal Aziz on assuming
the charge of Chairman Privatisation. Mr. Danyal Aziz briefed the forum on the
various facets of Pakistan’s Privatisation Program and deliberated on the
government’s plans that are in the offing in the sector. Secretary
Privatisation Division, Mr. Irfan Ali gave an overview of the Privatisation
Program’s implementation status and PC Board members provided their guidance to
achieve the targets.
The PC
Board extended their approval to initiate next steps for the privatization of
SME Bank and Heavy Electrical Complex. It was hoped that privatization of this
entities would soon take place to facilitate the improvements required for the
entities. The Board also decided to work out a detailed plan to suggest way
forward regarding hiring of Financial Advisors to divest GoP shares in Mari
Petroleum Company Limited.
Privatisation
Commission’s Board was apprised about the progress in proposed privatization of
Pakistan Steel Mills. The Minister for Privatisation, MrDanyal Aziz,
categorically stated that government wants PSM to be privatized at the
earliest, to put a halt to continued losses being accrued to the national
exchequer. He explained the PC Board, about steps, government has taken to pay
the salaries to more than 12000 employees of the PSM. He explained the PC’s
plan to settle the liabilities of PSM as approved by the PC Board and Cabinet
Committee on Privatisation, in consultation with Sui Southern Gas Company and
National Bank of Pakistan. The Board members extended their suggestions and
assured PC of their continued support to resolve the issues, enabling PSM to be
privatised at the earliest.
The
prospects of privatization of PIACL were also deliberated at length in the PC
Board Meeting. The forum had a consensus on the point that privatization of
PIACL has become difficult in the wake of recent legislation that has barred
from transfer of 51% GoP shares and management to the investors. It was decided
that government will be approached to clarify whether, privatization for PIACL
is an option or not. If government has an intention to privatize PIACL, then
amendment in the current legislation will be proposed to kick-off the privatization
process.
The PC
Board was also informed about the volume and nature of losses being accrued in
GENCOs and DISCOs. The volume of circular debt has already reached Rs 450
billion and is likely to rise more, making it all the more important to improve
the efficiency of the power generation and distribution companies.
After
detailed discussion, it was decided that Privatisation Commission would seek
approval of the government to privatize Northern Power Generation Company Limited
(NPGCL), Faisalabad Electric Supply Company Limited (FESCO) and Islamabad
Electric Supply Company Limited (IESCO) as strategic sale.
The
Privatisation Commission Board also discussed and adopted accounts in respect
of the Commission and constituted committees to resolve outstanding
administrative and financial issues.
The
Chairman PC, Mr. Danyal Aziz thanked the PC Board Members for their keen
interest and detailed deliberations in key matters. He hoped that PC as an
organization and PC Board members as part of the team would jointly work to
steer the government’s privatization agenda towards the right direction for
achievement of goals of efficiency and stability in state owned entities. The
meeting ended with the resolve to meet again in the near future to see the
implementation of decisions taken in the meeting.
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