Power plants, banks, other entities to come under the hammer

A meeting of the Cabinet Committee on Privatisation (CCOP) has given a go-ahead to Privatisation Division for initiating the process of privatisation of newly established 1233 MW Balloki Power Plant and the 1230 MW Haveli Bahadur Power Plant as well as two banks, SME and First Women Bank. The meeting presided over by Finance Minister Asad Umar on Wednesday approved privatisation of Jinnah Convention Centre, Islamabad, and Lakhra Coal Mines (now Lakhra Coal Development Company) and Services International Hotel Lahore.
The secretary Privatisation Commission made a detailed presentation to the committee on the privatisation programme, which has been pursued by successive governments over the last two decades. The committee discussed the objectives and rationale of the privatisation programme. It was noted that only one entity was privatised during the last five years, apart from divestment of shares in a few already privatised entities.
The CCOP noted that the listing of a large number of entities on the privatisation list for more than a decade has been detrimental to their operations as these were neither privatised nor was any serious effort undertaken to revitalise them. After detailed deliberations, the meeting decided to delist Pakistan Steel Mills, PIA, Pakistan Railways, Utility Stores Corporation, NHA and CAA from the privatisation list.
The Ministry of Industries was directed to put up an action plan for operationalisation of Pakistan Steel Mills within 45 days. Similar instructions for improvement and revitalisation of other entities were given to the relevant ministries. In the case of CAA, it was noted that the Authority performs a regulatory function and cannot be privatised.
The meeting also directed the Ministry of Industries to carry out a detailed review of all the entities under its purview and make recommendations for their revival or privatisation.
The Ministry of Commerce was similarly directed to review the insurance/ reinsurance sector and make recommendations. In the case of gas sector utilities, the CCOP decided that privatisation of these entities could not be undertaken before putting in place a regulatory regime to create competitive market place. The committee directed the Ministry of Petroleum to take a necessary action in this regard.
Regarding financial institutions, it was decided to delist National Bank of Pakistan. Delisting of IDBP was also approved as the process for its winding up is already under way. In case of HBFC and NITL, Ministry of Finance was directed to submit recommendations for their retention or removal from the privatisation list.
The committee also decided not to privatise the Printing Corporation of Pakistan and Trading Corporation of Pakistan. However, the relevant ministries were directed to submit proposals for improvement in their working along with plan for disposal of their non-essential fixed assets.
The committee also directed the Privatisation Commission to ensure complete transparency in all its transactions. The finance minister said that the process of divestment is meant to encourage and attract private sector partnership to turn around ailing PSEs by injecting capital and modernising them through technological up-gradation, besides introducing best corporate practices.