Cabinet panel okays winding up of ENAR

ISLAMABAD: The Cabinet Committee on State-Owned Enterprises has granted its assent for winding up ENAR Petrotech Services Limited (ESPL). There are two power distribution companies -- Tesco and Qesco -- which will be restructured and made ready for privatisation.

Federal Minister for Finance & Revenue Muhammad Aurangzeb presided over a meeting of the cabinet committee at the Finance Division on Thursday.

According to an official announcement, the committee considered the summaries presented by different ministries/ divisions for the categorisation of their relevant SOEs as strategic/essential or otherwise. The committee approved the summaries presented by Power Division, Ministry of Industries & Production and Ministry of Overseas Pakistanis & Human Resource Development, while the agenda of Petroleum Division was deferred for further deliberations.

Sources said that the panel approved the summary tabled by Power Division for the categorisation of power sector SOEs and was apprised that majority of the power distribution companies are already included in the privatisation list, while two companies Qesco and Tesco need to be restructured first and then could be ready for privatisation.

Similarly, the generation companies are also not being considered as essential for retention in the public sector.

The committee also discussed the categorisation of Nespak, observing that the functions performed by the entity could also be performed by private sector entities, and directed the Power Division to prepare restructuring plan for the entity with a view to ensure private sector participation.

The cabinet committee further considered the summary presented by Ministry of Industries & Production and directed that the board of Export Processing Zone Authority (EPZA) and Smeda be reconstituted and governance structure be reformed in line with the SOEs Act.

Additionally, the committee considered the summary of Petroleum Division and approved the recommendations regarding Saindak Metals Limited (SML) & Pakistan Mineral Development Corporation (PMDC) for their inclusion in the privatisation programme.