The Senate Standing Committee on Privatisation convened on Wednesday to review the privatisation of Distribution Companies (DISCOs) and Generation Companies (GENCOs), seek updates on the restructuring of Pakistan International Airlines Corporation Limited (PIACL) and healthcare facilities, and summon Pakistan Railways, the National Commodities Exchange Limited (NCEL), and the successful bidder regarding a property dispute in Karachi. The meeting was chaired by Senator Dr Afnan Ullah Khan.
DISCOs and GENCOs Privatisation
The committee received a comprehensive briefing on the latest status of the privatisation of DISCOs and GENCOs, taking into consideration the Single Buyer Model. During the meeting, it was informed that the privatisation of Quetta Electric Supply Company (QESCO) faces significant challenges due to its financial losses and operational issues. Senator Bilal Ahmed remarked that loss-making entities should not be left unattended and that measures should be explored to improve their performance rather than allowing their condition to deteriorate further.
The committee was informed that extensive deliberations are underway regarding the proposed privatisation of two power generation plants: Guddu power plant and Nandipur power plant. Officials briefed the committee on the progress made so far and the issues being considered by the relevant authorities. It was also apprised that the Petroleum Division has moved a summary concerning the matter, and there are indications that the proposed privatisation process may not proceed in its current form. The chairman observed that if the privatisation of Pakistan Telecommunication Company Limited (PTCL) had not taken place, it might have faced challenges similar to those currently being experienced in the power sector.
PIACL Restructuring Update
Subsequently, the chairman sought an update on the status of PIACL. The officials informed the committee that three major matters relating to PIACL are currently under consideration, including a payment of Rs5 billion, which is expected to be made by 15 June. The officials further informed the committee that more than 50 additional aircraft will be added to the fleet. The officials briefed the committee on the properties that are not part of the privatisation transaction and are currently in the process of being carved out from PIACL. The committee was informed that these properties have been evaluated by a company.
Senator Bilal inquired about the separate valuations of the land and the buildings. The officials stated that they did not have the relevant details at hand and would provide a comprehensive briefing on the matter in the upcoming meeting.
Healthcare Facilities for PIACL Employees
Furthermore, the chairman stated that he had received numerous complaints regarding the health and medical facilities available to PIACL employees and retirees. Officials informed the committee that over 14,500 registrations with State Life Insurance Company (SLIC) had been completed. They acknowledged that February and March were challenging months; however, the system is now functioning effectively. Recently, more than 2,200 OPD cases have been entertained.
Moreover, the committee was further informed that State Life Insurance Corporation has been engaged to provide healthcare services, with access to a network of more than 800 hospitals. Beneficiaries may obtain treatment at any hospital within the State Life Insurance Company network. Additionally, the chairman inquired about the arrangements previously made for employees who had to travel to Multan for medical treatment. The officials told the committee that a dedicated hospital has now been designated, and pharmacy as well as OPD facilities have been provided.
Karachi Property Dispute
The committee deliberated on issues relating to the Privatisation Commission of Pakistan concerning the lease, legal status, and future utilisation of the National Commodities Exchange Limited (NCEL) Building (formerly the Hyatt Regency Project) situated on Pakistan Railways land in Civil Lines, Karachi. During the briefing, officials informed the committee that the successful bidder had sought a change in the ownership/title arrangement. However, Pakistan Railways objected to the proposal, maintaining that the land would remain in the name of the successful bidder and that no change could be made in this regard. Subsequently, the matter became subject to litigation and a stay order was issued.
Expressing concern over the development, the chairman questioned the rationale behind the position adopted by Pakistan Railways and emphasised the need for a detailed examination of the matter. The committee decided to take up the issue again in its next meeting and directed that representatives of Pakistan Railways, NCEL, and the successful bidder be summoned to provide a comprehensive briefing and clarify their respective positions.
The meeting was attended by Senators Bilal Ahmed Khan, Khalil Tahir, Umer Farooq, Palwasha Mohammed Zai Khan, and the Secretary of the Privatisation Division and Additional Secretary of the Power Division.
