Privatization Commission''s Board has convened a meeting next week to start the process of privatization of eight public sector entities (PSEs). Sources in Privatization Division said the Board is likely to meet on Monday which would be headed by Chairman Mohammedmian Soomro though it is yet to be finalized.
Privatization Commission placed eight PSEs for privatization on its website on Thursday targeted for privatization for the next one to three years, sources said. These eight PSEs were approved by the Cabinet Committee on Privatization (CCoP) headed by Asad Umer on October 31 and ratified by the Cabinet on November 1.
These 8 entities are: SME Bank Limited, First Women Bank Limited, 1233 MW Balloki Power Plant, 1230 MW Haveli Bahadur Power Plant, Mari Petroleum Limited (divestment of remaining shares), Jinnah Convention Centre, Islamabad, Lakhra Coal Mines (now Lakhra Coal Development Company) and Service International Hotel, Lahore.
Out of four banking and insurance companies that the PC board recommended for privatization, the Cabinet approved privatization of only SME Bank Limited and First Women Bank Limited. The privatization of insurance companies including Pakistan Reinsurance Company and State Life Insurance Corporation was put on hold for further study.
The active list of privatization has only one company in petroleum sector for privatization. The Cabinet approved the sale of 18.39 percent shares of Mari Petroleum Limited on the stock exchange.
The CCOP also ordered the privatisation of Nandipur power plant, Lakhra coal mines and Services International Hotel Lahore. However, Cabinet has dropped Nandipur power plant from the active list.
The Council of Common Interests (CCI) approved 68 enterprises for privatization as stipulated in the first Letter of Intent submitted by Pakistan to the International Monetary Fund in 2013. Of these, the incumbent cabinet has recommended to retain only 8 for active privatisation and placed the privatisation of another 24 enterprises on the backburner.
The CCOP had supported privatization of all major entities in the privatisation programme of the previous government including Pakistan International Airlines (PIA), Pakistan Steel Mills (PSM) and Pakistan Railways (PR). All these enterprises were consuming huge state funds every year; however the Khan administration has stayed their privatization in favour of first restructuring.