Sale of 30pc PNSC shares: Bodies formed to resolve financial, legal matters

ISLAMABAD: The government has constituted two sub-committees to finalise financial, commercial and legal matters — including the sale price, payment plan and mechanism for the proposed sale of 30 percent shares of Pakistan National Shipping Corporation (PNSC) to the National Logistics Corporation (NLC), well-informed sources told Business Recorder.

The Ministry of Maritime Affairs (MoMA) briefed the Economic Coordination Committee (ECC) that PNSC was established under the PNSC Ordinance, 1979, which was amended in 2023 and 2024 to align it with the State-Owned Enterprises (SOEs) Act, 2023. PNSC is listed on the Pakistan Stock Exchange, with the Government of Pakistan holding 87.56 percent shares, while the general public holds 10.87 percent and the PNSC Employees Empowerment Trust owns 1.57 percent.

The ECC was informed that PNSC currently operates a fleet of 14 vessels, including three recently acquired ships. The corporation posted a net profit of Rs30 billion in FY 2022-23, Rs19.4 billion in FY 2023-24, and Rs20.4 billion in FY 2024-25.

MoMA further stated that the management of PNSC rests with its Board of Directors under Section 13 of the PNSC Ordinance, comprising 11 members: six independent directors, two ex-officio members, two elected representatives of minority shareholders, and the Chief Executive Officer. The Board is constituted with the approval of the federal government under Section 14 of the ordinance.

The ministry also apprised the ECC that the Prime Minister had earlier constituted a Task Force on revamping Pakistan’s maritime sector, chaired by the Minister for Defence and co-chaired by Vice Admiral (R) Iftikhar Ahmed Rao, along with an implementation committee.

According to directives issued by the Prime Minister’s Office (PMO) on December 16, 2025, the government approved in principle the proposal allowing NLC to acquire 30 percent shares in PNSC along with transfer of management control and consolidation rights, subject to applicable laws. The directives also emphasised the adoption of best corporate practices, engagement of world-class financial and legal consultants, and development of a robust and professional management structure. The DG NLC was also tasked to present a detailed five-year development plan for PNSC.

To operationalise these directives, the PMO on April 6, 2026, directed the Adviser to the Prime Minister on Privatisation to convene a meeting with all stakeholders. Subsequently, an inter-ministerial meeting was held on April 7, 2026, jointly chaired by the Adviser on Privatisation and the Minister for Maritime Affairs. The meeting was attended by representatives from key ministries, the Privatisation Commission, the Securities and Exchange Commission of Pakistan (SECP), NLC, Ernst & Young (financial advisers to NLC), and Orr Dignam & Co. (legal counsel).

The record of the meeting was submitted to the Prime Minister on April 15, 2026, following which the PMO directed MoMA to place the matter before the ECC after consultations with relevant stakeholders.

MoMA proposed the establishment of an Implementation Committee, chaired by the Adviser to the Prime Minister on Privatisation and co-chaired by the Minister for Maritime Affairs, to prepare a roadmap and oversee the execution of the transaction.

To support this committee, two sub-committees have been constituted: (i) the first committee, headed by the Adviser on Privatisation, includes the secretaries of Finance, Law & Justice, and Maritime Affairs, Chairman SECP, and DG NLC. It will finalise financial and commercial aspects, including sale price, payment structure, dividend distribution, and mechanisms for proceeds injection into PNSC; and ii) the second committee, chaired by the Secretary, Law & Justice Division, comprises representatives from Finance, Maritime Affairs, Privatisation Division, SECP, and NLC. It will address legal matters, including finalisation of the Share Purchase Agreement and Shareholders’ Agreement, and oversee transfer of management control.

MoMA informed that inputs from the Adviser on Privatisation and the Ministry of Law & Justice have already been incorporated into the summary as per PMO directives.

During the discussion, the ECC endorsed the proposal but stressed the importance of involving the private sector in future initiatives to enhance efficiency and maximise the sector’s potential.

Copyright Business Recorder, 2026