CCOP again delays decision on OGDCL shares transfer

ISLAMABAD: The Cabinet Committee on Privatization (CCoP) did not reach a decision Friday on the return of 32.64 million shares of Oil and Gas Development Company Limited (OGDCL) to the Petroleum Division or to Federal Sovereign Wealth Fund. The shares will remain with the Privatization Commission as the government considers selling them to a friendly country.

Chaired by Deputy Prime Minister and Foreign Minister Ishaq Dar, the committee meeting reviewed the proposal on the transfer of these shares from the Privatization Commission’s CDC account to either the Ministry of Energy (Petroleum Division) or the Sovereign Wealth Fund. However, a decision was postponed, with the committee opting to “maintain the status quo for the time being”.

This marks the second postponement of the shares’ transfer. In an earlier CCoP meeting on May 10, the committee also decided to maintain the status quo and directed the Law and Justice Division to examine provisions in the Sovereign Wealth Fund Act 2023.

The Pakistan Sovereign Wealth Fund, established by the federal government, aims to promote sustainable economic development through international standard management of its assets. It can transfer ownership of federal assets to the Fund based on recommendations from the FBR and approval from the federal government.

The CCoP also approved 24 entities for the Privatization Programme (2024-29), decided that inclusion of other SOEs in privatization programme will be taken upon completion of the review by the Cabinet Committee on State-Owned Enterprises (CCoSoEs) regarding categorization of Strategic/Essential SOEs. The entities not categorized as strategic or essential will be placed before CCOP for decision regarding their inclusion in the Programme.

The CCOP recommended that priority shall be accorded to reducing Federal Footprint in commercial space and limiting it to the Strategic and Essential SOEs only. The CCOP emphasized that even SOEs making profits shall also be considered for privatization. After deliberating on the privatization policy guidelines, CCOP considered 84 SOEs reflected in the Federal Footprint State Owned Enterprises (SOEs) Consolidated Report FY2020-22 in detail in light of SOE Act and Policy.

The approved 24 entities for privatisation programme are Zarai Taraqiati Bank Limited (ZTBL), Utility Stores Corporation (USC), Hazara Electric Supply Company (HAZECO), and two power generation companies, marking their inclusion in the programme. Other entities include Pakistan International Airlines Co. Ltd. (PIACL), Roosevelt Hotel Corporation (RHC), Pakistan Re-Insurance Co. Ltd. (PRCL), State Life Insurance Co. Ltd. (SLIC), Postal Life Insurance Company Limited (PLICL), First Women Bank Limited (FWBL), House Building Finance Corporation (HBFC), Pakistan Engineering Company (PECO), Sindh Engineering Limited (SEL), GENCO-I, GENCO-II, GENCO-III, GENCO-IV. Besides, Lahore Electric Supply Company (LESCO), Faisalabad Electric Supply Company (FESCO), Islamabad Electric Supply Company (IESCO), Multan Electric Supply Company (MEPCO), Gujranwala Electric Power Company (GEPCO), Hyderabad Electric Supply Company Limited (HESCO), Peshawar Electric Supply Company (PESCO) and Sukkur Electric Power Company (SEPCO) were recommended for privatisation.