No privatisation under Daniyal so far

Privatization Commission failed to undertake any privatisation transaction during the eight-month tenure of Federal Minister Daniyal Aziz despite his tall claims after assuming office on August 10, 2017 that the government will privatize Pakistan International Airlines (PIA) and Pakistan Steel Mills (PSM) before completion of its tenure. After assuming charge as federal minister for privatization, Daniyal Aziz stated in parliamentary committees of both Houses and to the media that he would ensure privatization of two loss-making entities - PIA and PSM - before end of May 2018; however sources in the Commission told Business Recorder that he has no output to show for his 8 months.
Arsalan Khan Hoti, Member, Privatization Commission''s Board told Business Recorder acknowledged that no significant progress has been made with respect to privatization of PIA and PSM. He further said that there are two privatization transactions in the pipeline - SME Bank and Mari Petroleum - however, there has been no visible progress in this regard and their privatisation plans may have to be shelved.
The one and only meeting of PC board during the past eight months was held in October, 2017 in which Federal Minister Daniyal Aziz briefed the forum on the government''s ambitious privatisation plan.
Subsequent to the elevation of former Chairman Privatization Commission Mohammad Zubair as Governor Sindh on February 2, 2017 till Daniyal Aziz was allocated the portfolio with the status of a full minister in August 2018 there was no chairman/minister of the PC.
At present, the privatization process of PIACL has been halted as the Commission is in the process of hiring fresh Financial Advisors (FAs) and/or re-engaging the services of a former FA whose financial advisory services agreement expired on October 3, 2017, sources said.
Pakistan Economic Survey 2017-18 revealed that there was no privatization during the first eight months of the year (July-March 2018). Prime Minister Shahid Khaqan Abbasi after assuming the office created several new ministries with Privatization Commission one of them; he renamed it Ministry of Privatization with one constituent Privatization Division. The Ministry of Privatization has been taken out of the administrative control of Finance Division and given the status of an independent Ministry.
The IMF in its latest post programme monitoring (PPM) report uploaded on its website on March 19, 2018 maintained that privatisation and restructuring of key loss-making Public Sector Enterprises (PSEs) have been largely on hold; and assessed the combined accumulated losses of PSEs (including PIA, Pak Steel Mills, power sector) exceeding Rs 1.2 trillion (4 percent of GDP) which could eventually lead to sizable demand of budgetary resources.
There are 14 cases of recovery of outstanding dues from various private parties at various stages of litigation including: (i) $800 million due from Dubai-based Etisalat group pending with the PC; and (ii) Schon Group purchased National Fibers Limited, Pak-China Fertilizers Limited and Quaidabad Woolen Mills for Rs1.3 billion and still owes Rs319.3 million to the government of Pakistan.
Unlike previous regimes, only profitable entities were privatized during the current tenure of the PML-N administration through offering government shares in the capital market. The government sold 20 per cent shares of the United Bank Limited (UBL) at Rs 38.2 billion, 5 percent shares of the Pakistan Petroleum Limited (PPL) at Rs 15.34 billion, 11.46 percent shares of the Allied Bank Limited (ABL) at Rs 14.44billion, 41.5percent shares of the Habib Bank Limited (HBL) at Rs 102.34 billion and 88 percent shares of the National Power Construction Corporation (NPCC) at Rs 2.5 billion.