The board members of the Privatization Commission have proposed to halt the privatization of 16 properties of the Federal Government, including Pakistan Engineering Co. (PECO) and Sindh Engineering Limited (SEL), on account of the inherent issues of these entities.
As per the details, Federal Minister/Chairman Privatisation Commission, Abid Hussain Bhayo, chaired the first board meeting of the Privatization Commission (PC) after assuming the charge as chairman.
The Federal Secretary, Dr. Iram. A. Khan, board members, and senior officials of the ministry attended the important meeting.
Matters relating to Jinnah Convention Center (JCC), Sindh Engineering Limited (SEL), Pakistan Engineering Co. (PECO), Pakistan Steel Mills (PSM), and other Federal Government properties were discussed in detail.
The board members proposed that the privatization of PECO, SEL, and sale of the remaining 16 properties of the Federal Government should be halted on account of inherent issues faced by these entities.
The board emphasized that it was doing everything in its power to expedite the privatization process but had not received the requisite support from the other concerned Ministries/Divisions to resolve the issues faced by these entities.
The PC Board was briefed about the current status of the privatization of the Jinnah Convention Center (JCC). The board was informed that the transaction was halted on account of reservations on the transaction structure approved for it.
The Federal Minister of Privatization recently held a detailed meeting to sort out the matter with CDA Chairman, and it was mutually agreed that Privatization Commission, in liaison with CDA, would devise a viable layout plan for JCC, and PC shall also revise the transaction structure in consultation with CDA. The PC Board members endorsed the proposals and recommended that the matter should be placed before CCoP.
The board was apprised of the current status of the National Power Parks Management Company Limited (NPPMCL) transaction, which is one of the major SOEs on the active privatization list. Chairman PC stressed that the Government of Pakistan is committed to inviting much-needed private sector investment and expertise in the Power Sector.
The CCoP, in its meeting held in June 2022, had constituted a sub-committee of stakeholders (Power, PC, NPPMCL & Finance) for the early resolution of matters in the realization of the transaction of NPPMCL.
The smooth flow of transactions was greatly impacted by the pandemic in 2020, when 12 parties were pre-qualified from across the globe, including the Middle East, China, Japan, Korea, Southeast Asia, Europe, and Pakistan. The PC Board unanimously approved the proposal for expediting the transaction-related matters of NPPMCL up to its successful closure.
The PC Board’s approval sought a strategy to resolve different issues of Sindh Engineering Limited (SEL) and Pakistan Engineering Company (PECO), which have blocked their privatization. It was briefed that the constitution of the SEL Board and the appointment of a permanent MD will enable the implementation of necessary decisions with regard to its privatization. The Board members proposed that the matter may be placed before CCoP in its upcoming meeting.
The board was also apprised about the overall progress of the privatization of SOEs, including PSM and HBFCL. The privatization of PSM has come to a very advanced stage with the on-site visit and buyer-side due diligence from the pre-qualified investors. The potential investors had spent two weeks in Pakistan, meeting senior government officials in Karachi and Islamabad and visiting the Pakistan Steel Mills (PSM) Karachi. The board members showed their appreciation for the progress made in the HBFCL privatization and hoped that the process will be completed soon.
Chairman Privatisation, Abid Hussain Bhayo, said that the government of Pakistan is committed to bringing the economy out of the current difficult situation and focusing on the betterment of common folks. He further said that the government was working earnestly to bring major reforms in the energy, agriculture, and real estate sectors through hefty investment from Pakistan and abroad.
