Latest news with #PrivatizationCommission
Business Recorder
24-07-2025
- Business
- Business Recorder
Privatisation of SOEs: PC to be given full legal autonomy: PM
ISLAMABAD: In a bid to accelerate the privatisation of loss-making state-owned enterprises (SOEs), Prime Minister Shahbaz Sharif pledged on Wednesday that the Privatization Commission would be granted full legal autonomy in an effort to eliminate bureaucratic red tape and extraneous interference in the country's privatisation process. The prime minister, while chairing a review meeting on progress of privatisation of SOEs, emphasised that reviving the country's ailing economy depends on the timely and transparent divestment of underperforming public sector entities. He described privatisation as a top priority for his administration, saying it must be handled 'effectively, comprehensively and efficiently.' SOE Act and MoF reporting: CCoSOEs grants SPD entities full exemptions 'Illegal occupation of valuable lands of national institutions is unacceptable under any circumstances,' he said, while urging caution in the disposal of such land. 'Every possible precaution should be taken.' The meeting focused on reviewing the progress of institutions slated for privatisation in 2024, including high-profile entities such as Pakistan International Airlines (PIA) and several power transmission companies, commonly referred to as Discos. PM Sharif directed that the Commission's efforts align with market conditions and adhere strictly to legal and transparency requirements. 'All decisions should be implemented fully and effectively,' he said. 'I will regularly monitor the progress of the ongoing work in the Privatization Commission.' The Privatization Commission officials briefed the prime minister on a phased strategy for privatising state enterprises, structured around legal, financial, and sector-specific factors. They noted that the plan, approved by the federal cabinet, is designed to meet both economic and institutional benchmarks within a fixed timeframe. The prime minister also underscored the importance of consulting professional experts and maintaining international standards throughout the privatisation and restructuring process. The push to privatise loss-making enterprises comes amid mounting fiscal pressures, with the government seeking to reduce its financial burden and attract private investment into sectors long plagued by inefficiencies and mismanagement. The meeting was attended by federal ministers Awais Leghari and Ahad Cheema, Chairman of the Privatization Commission Muhammad Ali, along with senior government officials and advisers. Copyright Business Recorder, 2025
Express Tribune
24-07-2025
- Business
- Express Tribune
PM reiterates talk offer to India
Prime Minister Shehbaz Sharif on Wednesday said Pakistan was ready for a meaningful dialogue with India on all outstanding issues. The prime minister stated this during his meeting with British High Commissioner to Pakistan Jane Marriott, the PM Office Media Wing said in a press release. The prime minister expressed his appreciation for the UK's role in de-escalation of tensions during the Pakistan-India stand-off. He welcomed the UK government's recent decision to resume PIA flights to and from the UK, which he said, would go a long way in alleviating the hardships faced by the British Pakistani community as well as enhancing people-to-people exchanges. He particularly appreciated the role of the high commissioner in this regard. The regional situation in South Asia and the Middle East was also discussed. The UK high commissioner thanked the prime minister for receiving her and briefed him about her recent visit to London, where she had extensive consultations on enhancing Pakistan-UK bilateral ties. She lauded the government's economic performance in the last year and a half, under the vision and leadership of the prime minister, which had brought about a significant improvement in all key macro-economic indicators. She also shared with the prime minister, the UK's perspective on regional developments in South Asia and the Middle East. Privatization Commission Prime Minister Shahbaz Sharif on Wednesday directed the authorities to ensure that the Privatization Commission would be given full autonomy as per the law to eliminate red tape and unnecessary elements during the denationalisation process of the state-owned enterprises (SOEs). The prime minister chaired a review meeting on the progress of privatization of SOEs here at the Prime Minister's Office, a PM Office news release said.
Business Recorder
23-07-2025
- Business
- Business Recorder
Revised business plan: PIA buyer required to invest Rs70bn in 5 years: PC
ISLAMABAD: Privatization Commission Secretary Usman Akhtar Bajwa, Tuesday, informed the Senate Standing Committee on Privatization that the buyer of Pakistan International Airlines Corporation Limited (PIACL) will be required to invest Rs70 billion over five years period under revised business plan of privatisation of PIA. A meeting of the Senate Standing Committee on Privatization was held under the chairmanship of Senator Dr Afnanullah Khan. The meeting was attended by senators Zeeshan Khanzada, Bilal Ahmed Khan, Nadeem Ahmed Bhutto, Mohsin Aziz and other officials from Ministry from Privatization, Power Division and Zarai Taraqiati Bank Limited (ZTBL). Aviation panel told: PIACL sell-off process almost over Secretary Privatization Commission, while sharing the revised business plan of privatization of the national flag carrier, stated that the due diligence process has begun for pre-qualified companies in the PIA privatization. Starting next week, site visits and expert sessions will begin for pre-qualified companies. Expert sessions will include briefings on aircraft conditions and routes, said Usman Bajwa. To a query, he said that a decision has been taken to launch PIA flights to Manchester starting from August 14. However, there are security concerns for PIA's North American routes. Efforts will be made to resolve security concerns regarding North American routes. He stated that PIA's current business model is not sustainable. In the previous bidding round, investors backed out because their demands were not met. He further briefed that now, investors will receive sales tax exemption on aircraft purchases. The government had to inject Rs100 billion annually to keep PIA running. The services of the previous financial advisor have been re-engaged for PIA's privatisation. During the meeting, the committee reviewed a report highlighting complaints of the pensioners of Pakistan International Airlines Corporation Limited (PIACL). It was also revealed that currently pension liabilities for 6,625 employees of PIACL amount to Rs14.87609 billion. Expressing concern, Chairman Committee Senator Dr Afnanullah Khan remarked that the pension amount is extremely low, asking how people are expected to survive. In response, the Ministry of Privatization stated that pension policies are regularly revised and updated annually in line with allowances. The chairman directed that Grade/Scale wise pension details, including the amount received and the distribution process, be presented in the next meeting. Privatization Commission informed the committee that the Board of the Privatisation Commission in its July 2025 meeting resolved as under:a) Pre-qualified the following interested parties as prospective bidders/pre-qualified bidders (PQBs): (i) Consortium comprising Lucky Cement Limited, Hub Power Holdings Limited, Kohat Cement Company Limited and Metro Ventures (Private) Limited; (ii) Consortium comprising Arif Habib Corporation Limited, Fatima Fertilizer Company Limited, City Schools (Private) Limited and Lake City Holdings (Private) Limited; iii) Fauji Fertilizer Company Limited, and iv) Air Blue Limited. b) Consortium comprising ASIL and Serene Air (Private) Limited, Bahria Foundation, Mega C&S Holding, Equitas Capital LLC, was not pre-qualified, as it did not meet the requirements of the Request for Statement of Qualification (RSOQ). The PQBs have been invited to conduct buy-side due diligence by giving access to Virtual Data Room. The PQBs will also be invited for pre-bid conference/meetings for finalisation of bid documents, Privatization Commission added. About the privatisation of power distribution companies, secretary Privatization Commission stated that the DISCOs face issues related to asset transfers, ownership of grid stations, and recoveries from government departments. The DISCOs are also facing challenges related to regulatory frameworks, payments to government entities, and pension liabilities and payments. He further said that 51 percent to 100 percent assets of the DISCOs' will be sold. Three DISCOs will be privatised between January and June of the current fiscal year. The committee was informed that the Pakistan Minerals Development Corporation (PMDC) is not yet included in Privatization list. Senator Zeeshan Khanzada questioned why this institution is being Privatized and asked about the purpose behind it. Senator Bilal Ahmed Khan also raised concerns, questioning why land is being granted/allotted if the government plans to privatise the institution. He further asked about the area under PMDC's operation and the quantity of mineral output. Senators further queried the basis of the privatization decision, noting that the Petroleum Ministry lacks the mandate to privatise the PMDC. In response, the minister clarified that the Cabinet Committee on SOEs is responsible for evaluating organisations and that the Petroleum Ministry can better explain its mandate. The committee was briefed on the privatisation process, which involves recommendations to the Board, Cabinet's approval, and hiring of financial/legal advisors through advertisements. The evaluation criteria will then be assessed before final approval. The Chairman Committee Senator Dr Afnanullah Khan proposed that PMDC be invited to the next meeting to further deliberate on this matter. Regarding ZTBL, the committee was informed that it is included in Phase One of the privatisation list approved by the government in August 2024. A total of 24 organisations are to be privatised. ZTBL is currently in the process of hiring a financial adviser. The ministry stated that the negotiations are in progress to finalise how ZTBL will be privatised. Moreover, Senator Dr Afnanullah Khan questioned the delay in hiring a financial adviser, noting that the last meeting was held on January 31st, when the bids were submitted and evaluated. He expressed concern that nearly six months had passed without finalizing the appointment. The ministry responded that the process typically takes six to eight weeks but was delayed due to high fee demands by one party nearly Rs500 million forcing a restart of the process. The ministry assured the committee that the complete privatisation process is now targeted to be completed within nine months. Furthermore, Senator Zeeshan Khanzada raised a critical point upon the overall privatisation process of the entities. He further questioned the rationale behind privatizing the entities while highlighting the performance of the Privatization Commission. He urged that this issue be thoroughly discussed in the committee. Copyright Business Recorder, 2025
Arab News
03-07-2025
- Business
- Arab News
Pakistan pushes ahead with agri bank privatization under IMF-backed reform plan
KARACHI: The government on Thursday appointed a consortium of financial advisers for the sale of Zarai Taraqiati Bank Limited (ZTBL), a state-owned agricultural lender, according to an official statement. The decision, made during a meeting of the Privatization Commission (PC) Board chaired by Muhammad Ali, Adviser to the Prime Minister, signals the government's intent to fast-track key transactions under its broader economic reform program. The board approved the selection of a consortium led by Next Capital Limited, which ranked highest among six qualified bidders. 'ZTBL is among the priority transactions in the current privatization pipeline. The appointment of a top-tier consortium of FAs [financial advisers] reflects the government's strong commitment to executing the process in a professional, transparent and timely manner,' the Privatization Commission said in a statement. Pakistan's privatization program, long encouraged by the International Monetary Fund (IMF) under various loan arrangements, is aimed at reducing fiscal losses from poorly performing state-owned enterprises (SOEs), improving governance and boosting private sector participation. The IMF has repeatedly called for structural reforms, including divestment from commercial entities, to ease pressure on public finances and strengthen the country's economic outlook. Alongside the appointment, the PC Board also approved the formation of a Negotiation Committee to finalize the Financial Advisory Services Agreement (FASA) with the selected consortium. Other shortlisted bidders included major consortiums led by Arif Habib Limited, A.F. Ferguson, AKD Securities, Bridge Factor and JS Bank. ZTBL provides agricultural credit and rural banking services across Pakistan. Its privatization is seen as part of a broader effort to reform the financial sector and reduce the state's commercial footprint.
India.com
29-05-2025
- Business
- India.com
More bad news for bankrupt Pakistan, Shehbaz govt decides to sell one of country's biggest company, the company is...
More bad news for bankrupt Pakistan, Shehbaz govt decides to sell one of country's biggest company, the company is... After India's Operation Sindoor, Pakistan's condition seems to be worsening and now it's clearly visible too. One major sign of this is the upcoming sale of one of its biggest companies. The Pakistani government is preparing to sell its national airline, Pakistan International Airlines (PIA), to private players and reports say that they have already started inviting bids for it. Originally, the last date to submit bids was June 3, but it has now been extended to June 19. This move gives potential buyers more time to prepare their proposals to take over PIA. The government wants more people to participate in the bidding process, which is why they have given a 15-day extension. This sale is considered one of the biggest and most important privatization steps in Pakistan's recent history. Govt offering to sell between 51-100 per cent of its ownership A senior official from Pakistan's Privatization Commission confirmed to The News that the deadline for submitting bids has been extended, but all other terms and conditions for the sale remain unchanged. The government is offering to sell between 51 per cent and 100 per cent of its ownership in PIA, along with full management control. When asked why the deadline was extended, the official said it was because of the Eid-ul-Adha holiday. This move comes as part of the government's plan to reduce its fiscal deficit, fix loss-making state-owned enterprises, and attract foreign investment. The privatization of PIA is also part of the broader economic reforms agreed upon with the International Monetary Fund (IMF) under the Extended Fund Facility (EFF) program. What was the plan earlier? To make the deal more attractive, the Pakistani government has introduced new incentives. These include GST (Goods and Services Tax) exemptions on new aircraft and removing PIA's loans from its balance sheet. The goal is to present potential buyers with a 'clean, zero-debt' balance sheet. A revised price benchmark for the deal may also be set soon. This new plan is much simpler and more straightforward compared to the previous failed attempt. Earlier, the government had offered 60 per cent of shares with an optional 15 per cent top-up. However, that plan failed mainly because of PIA's huge negative equity of 45 billion rupees and an 18 per cent GST on aircraft, which turned buyers away. EY Consulting LLC is advising the Privatization Commission on this sale. The government hopes to complete the process within this calendar year.
