ISLAMABAD: Since the appointment of Ishaq Dar as Chairman of the Cabinet Committee on Privatisation (CCoP) on 22nd March 2024, the committee has yet to convene any formal meeting, causing delay in the crucial decision making processes though an informal meeting reportedly occurred at the Foreign Office, sources revealed.
A spokesperson from the Privatisation Commission affirmed the absence of any official CCoP meetings under Ishaq Dar’s chairmanship since his appointment.
Concerns were raised by an official within the Privatisation Commission who, speaking on the condition of anonymity to Business Recorder, revealed that no summary from the Privatisation Commission Board has been forwarded to the cabinet for approval of the board decisions. The official emphasised that CCoP convenes following the submission of PC Board’s decisions.
PM approves reconstituted CCoP with Dar as its chairman
The last formal meeting of the Privatisation Commission Board, chaired by the interim Minister for Privatisation Fawad Hasan Fawad, took place on February 8, 2024. During this session, discussions were held on approving the Legal Segregation/Draft Scheme of Arrangement for the Pakistan International Airlines Company Limited (PIACL) and transaction structures proposed by the Financial Advisor for divestment.
Additionally, approval was granted for the formation of negotiation committees for transactions involving House Building Finance Company Limited (HBFCL) and First Women Bank Limited (FWBL).
In parallel developments, Ishaq Dar was also involved with a committee formed under the chairmanship of the Minister of Defence and Aviation. This committee is tasked with reviewing the outsourcing of airport management and monitoring matters related to the privatization of PIA. The meeting of the committee was held this Tuesday past.
The same day, Tuesday, Tariq Bajwa, former Secretary Finance and considered a close confidante of Ishaq Dar, was appointed asChairman of the board of PIA Holding Company.
July 2023 PIACL’s board of directors approved to restructure the airline by incorporating the new holding company, retaining legacy loans, non-aviation assets, and existing PIACL subsidiaries. Following its reconstitution on March 22, 2024 the board of directors of PIACL held its first meeting on 25 March 2024, committing to the government’s timeline to privatise PIA by June 15, 2024, sources said.
On April 27, 2023, PIA was declared an essential service under Section 3 of the Pakistan Essential Services (Maintenance) Act, 1952 which prohibits all forms of union activities.
The caretaker government had declared public energy sector companies as essential services which prompted the Public Services International, with its affiliates including All Pakistan Wapda, Hydro Electric Labour Union, to request International Labour Organisation intervention in respect of alleged violation of trade union rights. ILO response is still awaited.
Prime Minister Shehbaz Sharif repeatedly underscored the imperative of rationalising government expenditures, including the privatisation of non-performing state-owned enterprises, to alleviate the burden on the national exchequer.
Copyright Business Recorder, 2024
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