In a significant move to advance the government's economic reform agenda, the Privatisation Commission (PC) Board has recommended major updates to the country's privatisation programme. The board, in a meeting held on Monday, proposed adding three state-owned enterprises (SOEs) for privatisation while advising the removal of two others from the active list.
Three SOEs Cleared for Privatisation
The meeting, which was chaired by Muhammad Ali, the Adviser to the Prime Minister on Privatisation and Chairman of the Privatisation Commission, followed a detailed evaluation by the board's Investment Committee. The committee had assessed 15 SOEs that were referred by various ministries for potential inclusion in the privatisation drive.
Based on the committee's rigorous assessment, the PC Board approved the inclusion of three entities. These are Saindak Metals Limited (SML), the Pakistan Minerals Development Corporation (PMDC), and the National Insurance Company Limited (NICL). The board determined that these three state-owned enterprises meet the necessary criteria for privatisation.
Delisting of Non-Viable Entities
Conversely, the board recommended the delisting of Sindh Engineering Limited (SEL) and the Utility Stores Corporation (USC) from the privatisation programme. The decision was based on clear operational and financial grounds.
Sindh Engineering Limited has been non-operational since the 2007-08 period. Its primary asset is land, which is currently entangled in legal disputes, making it an unattractive proposition for privatisation. In the case of the Utility Stores Corporation, operations have already been halted following a government decision. The corporation's financial health is severely compromised, with its liabilities far exceeding its available assets.
The Investment Committee found the remaining 12 SOEs from the initial list of 15 to be not viable for privatisation at this time. Consequently, the board did not approve their inclusion in the current programme.
Framework for Future Privatisation
The PC Board reaffirmed that the entire privatisation process will be firmly anchored within the government's broader framework for SOE reform and fiscal consolidation. The board emphasised that all decisions will be guided by the core principles of transparency, market feasibility, and the protection of public interest.
A key policy reiterated was that only entities which are both viable and transaction-ready will be pursued for privatisation. For SOEs deemed unsuitable for privatisation, the relevant administrative ministries have been advised to explore alternative options. These alternatives could include measures such as liquidation to ensure that institutional resources are not wasted.
This prioritisation strategy is designed to ensure that the government's efforts and resources are concentrated on credible and executable transactions that align with the nation's overarching economic objectives.
