Hiring of financial advisers for ZTBL, USC approved

ISLAMABAD: The Privatization Commission Board on Monday approved the initiation of the process to hire financial advisers (FAs) for the privatisation of Zarai Taraqiati Bank Ltd (ZTBL) and the Utility Stores Corporation (USC), marking a significant step in the government’s ongoing privatisation efforts.

The decision was made during a meeting chaired by Minister for Privatization and Chairman of the Privatization Commission, Abdul Aleem Khan. The board agreed to proceed with selecting financial advisors from a pre-qualified panel, a move aimed at ensuring transparency and efficiency in the privatization process.

A senior official from the Privatization Commission told “The News” that following the approval, requests for proposals (RFPs) will be sent to the shortlisted financial advisors. “Once the RFPs are issued, these advisors will submit their reports to the commission. These reports will be carefully reviewed, and the commission will select financial advisors for these proposed transactions based on the evaluations,” the official said.

ZTBL, Pakistan’s premier agricultural development bank, and the USC, a state-owned retail enterprise, have long been on the list of public-sector entities slated for privatization. The hiring of financial advisors will facilitate the technical evaluation and financial structuring necessary to move forward with the sale of these state-owned enterprises.

In addition to ZTBL and USC, the board also reviewed the hiring process of financial advisors for private sector participation in three electricity distribution companies (DISCOs): Gujranwala Electric Power Company (Gepco), Faisalabad Electric Supply Company (Fesco), and Islamabad Electric Supply Company (Iesco). These DISCOs have faced mounting financial and operational challenges, and privatization has been suggested as a solution to improve their efficiency and service delivery.

The Privatization Commission Board considered a report from its evaluation committee and decided to move forward with hiring financial advisors from the same pre-qualified panel. The process will follow the guidelines established under Regulation 3(2)(c) of the Privatization Commission (Hiring of Financial Advisers) Regulations, 2018.

However, uncertainty persists regarding the fate of the USC. During a Senate Standing Committee meeting on Industries and Production held last Friday, top officials from the Ministry of Industries and Production, along with the managing director of the USC, expressed confusion over whether the government plans to privatize the corporation or restructure it. This uncertainty has left USC employees and stakeholders unclear about the future of the organization.

Despite the lack of clarity surrounding the USC’s privatisation, the government appears committed to pushing forward with its broader privatisation agenda. The government’s privatization program, aimed at improving public sector efficiency and raising funds, has been a focal point of its economic reform agenda. The hiring of financial advisors represents the next critical phase in this process.