Pakistan unveils plan to privatise 33 SOEs in FY20

ISLAMABAD: The government on Wednesday unveiled an ambitious programme to privatise 33 state-owned entities during the current fiscal year of 2020, including six public sector enterprises (PSEs).

Main Muhammad Soomro, privatisation minister said the minister has also targeted to open auctions of 27 state-owned unproductive properties in the current quarter.

“The government planned to privitise SMEs bank, First Women Bank, two RLNG power plants including Haveli Bhadar Shah and Balloki, Mari Petroleum Company Limited, Services International Hotel Lahore and Jinnah Convention Centre Islamabad,” Soomro told a news briefing. Firdous Ashiq Awan, special assistant to prime minister on information and broadcasting and Rizwan Malik, secretary privatization also attended the briefing.

“The proceeds from these transactions would be utilized on debt servicing and public welfare projects.” Soomro said government had received 12 bids for privatisation of National Power Parks Management Company Limited (NPPMCL). The NPPMCL owns two power plants located at Balloki and Haveli Bahadur Shah, which have a combined generation capacity of 2,453 megawatts.

The minister said investors from Japan, Thailand, the United Kingdom, Malaysia and Pakistan have submitted their documents. “This shows foreign investors are keen to invest in Pakistan,” he added.

The government has also planned divest up to 7 percent its stakes in Oil and Gas Development Company (OGDC) and 10 percent shares of Pakistan Petroleum Limited (PPL). Soomro said auctioning 27 state-owned unproductive properties and “this will be carried out in next two months as road shows for investors has already been held”.

“Foreign investors from Dubai and Qatar and overseas Pakistanis had expressed interest in buying these properties,” Malik, secretary privatization, said. He said a plan to revive Pakistan Steel Mills through investment from strategic investors is also finalized that would help in reducing mills’ losses.

“Similarly, we are also working to control financial bleeding of other PSEs.” On a question about slow process in privatisation programme, Malik said “privatisation process takes time for ensuring efficiency as well as transparency”.

He financial advisers for 14 PSEs had already been appointed by following PPRA rules and privatisation ordinance. “The government is following privatization ordinance, Public Procurement Regulatory Authority (PPRA) rules and past court judgments while carrying out the privatization of the state owned entities,” he added.

Malik hoped that the country will resolve pending PTCL privatization issue with UAE based company Etisalat in the next few months. He said the ministry has also decided to transfer three government-owned unproductive properties to Naya Pakistan Housing scheme.