Privatization Commission resolute to sell off loss making units to reduce pressure from exchequer

Privatization Commission (PC) extends approval to initiate privatization of SME bank and Heavy Electrical Complex. Privatization of both the entities is an effort to facilitate improvements required in the respective organizations.

Board of Privatization Commission to soon start process regarding hiring of Financial Advisors for Mari Petroleum. After input from Advisors, Government is planning to sell remaining 20 percent shares in Mari Petroleum.

PC Board highlighted the progress with respect to the proposed sell-off of Pakistan Steel Mills (PSM). PSM privatization will put a halt to the continuous losses being accrued on the National Exchequer. PC also plans to settle liabilities of PSM in consultation with SSGC and NBP. Furthermore the meeting noted PIAC privatization has become difficult in the wake of recent legislation barring the sale of 51% shares.

The Board said that the Government will be contacted as to whether PIAC privatization is still on the table or not. If Government is willing to sell some stake in PIAC, legislation would require amendments. The said amendment will help in resumption of Privatization process.

According to the Board, volume of Circular Debt reached to Rs. 450 billion; given the situation of debt rollover between State Owned Entities, Circular Debt is expected to rise. The Board suggested that increasing Circular Debt hints more improvement in efficiency of generation and distribution companies.

PC also notified that is currently working to seek approval from government to sell Energy Sector companies. Companies from Energy Sector being considered for sell include; Northern Power Generation Company Limited (NPGCL), Faisalabad Electric Supply Company Limited (FESCO) and Islamabad Electric Supply Company Limited (IESCO).