The Privatisation Commission of Pakistan has put the Printing Corporation of Pakistan on the active privatisation list of state owned enterprises available at the website of the Commission, although the matter is now under consideration of Cabinet Committee on Restructuring (CCoR), it has been learnt reliably.
The decision to delist the corporation from privatisation was taken on the recommendations of consultants of the PC who determined the net worth of the corporation is in negative. Following the recommendations of consultants, a revival plan was being taken to CCoR for further deliberations. But PCP is still in the list of privatisation shown by privatisation commission.
In a latest development, a restructuring plan was also approved by Prime Minister's Secretariat and has been forwarded to the Economic Co-ordination Committee (ECC) for approval. Managing Director M Azar confirmed that the plan of disinvestment of corporation has been put off twice by the federal government due to negative net worth.
In restructuring plan the corporation's loss after tax of last fiscal year is shown as Rs 244 million and the accumulated losses reached Rs 1.6 billion. The management of the corporation is of the view that losses of the organisation can be reduced by laying out surplus staff, restructuring of the operations and adopting an effective marketing campaign.
Laying off of 320 surplus employees and grant of a bail out package of Rs 1.13 billion to pay off liability of out-going staff, C.P Fund, EOBI and purchase of new machinery has been also part of the proposal forwarded to CCoR and the ECC for its consideration.
While reviewing Printing Corporation of Pakistan's loan pay back capacity against the principal amount of Rs 30.345 million obtained from Government during 1982-86 and 1991-95 at an interest rate of 14.2 percent to 16 percent, ECC on December 2010 directed Ministry of Privatisation to fast track PCP's privatisation procedures taking into consideration its financial liabilities. The ECC further advised Cabinet Division to resubmit the issue after necessary homework in consultation with Privatisation Commission.