The federal government has decided to sell off 20 percent stake in Sate Life Insurance Corporation (SLIC) sans management control, well-informed sources in Finance Division told Business Recorder.
This decision was taken at a meeting presided over by the Prime Minister's Advisor on Finance and Revenue/ Chairman Cabinet Committee on Privatisation (CCoP), Dr Abdul Hafeez Shaikh and Minister for Privatisation, Muhammandmian Somroo and Prime Minister's Adviser on Commerce, Textile, Industries and Production, Abdul Razak Dawood wherein it was decided to place SLIC on active list of privatisation. The meeting directed Commerce Division to submit a formal summary to the CCoP for its privatisation.
Early this year, the Commerce Division had briefed the Public Accounts Committee (PAC) that the government has shelved privatisation of SLIC, National Insurance Corporation Limited (NICL) and Pakistan Reinsurance Company Limited (PRCL).
The Commerce Division argued that the privatisation will have a negative impact on small insurance holders; therefore, the government has postponed the process, adding that within a year a significant improvement will be seen in the performance of the SLIC.
When contacted, Abdul Razak Dawood confirmed that the government has decided to privatize 20 per cent share of SLIC. However, its management with 80 percent shares will remain with the GoP.
However, when Abdul Razak Dawood was told Minister for Maritime Affairs, Ali Zaidi has delisted Pakistan National Shipping Corporation (PNSC), Port Qasim Authority (PQA) and Karachi Port Trust (KPT) from privatisation program on the logic that all three are profitable units and have strategic importance for the country, he replied "don't compare apples with oranges" adding that the management of SLIC will remain with the government.
The SLIC was constituted under the Life Insurance (Nationalisation) Order (LINO), 1972 and the federal government has 100 percent equity in the Corporation. The Commerce Division is responsible for administrative oversight of the company. The management of the company is headed by chairman who is appointed by the federal government in pursuance of powers conferred under rule 12(1) of LINO.
The Institutional Reforms Committee headed by Prime Minister's Advisor on Institutional Reforms and Austerity, Dr Ishrat Hussain has reportedly recommended privatisation of more than three dozens public sector entities and financial institutions.
The following list, approved by the federal cabinet, shows the organisations that will no longer remain part of the Federal Government and are therefore excluded from any further scrutiny: (i) Cabinet Printing Corporation of Pakistan (PCP);(ii) State Life Insurance Corporation (SLIC);(iii) Pakistan International Airlines (PIA); (iv) Kushhali Bank of Pakistan (KBP); (v)Industrial Development Bank of Pakistan (IDBP); (vi) National Investment Trust (NIT);(vii) SME Bank; (viii) Zarai Taraqqiati Bank Limited (ZTBL);(ix) First Women Bank Ltd.(FWBL);(x) National Construction Company (NCC); (xi) Hazara Phosphate Fertilizer Ltd;(xii) Pakistan Steel Mills Corporations; (xiii) Sind Engineering Pvt Limited;(xiv) Heavy Electrical Complex;(xv) Heavy Mechanical Complex;(xvi) Pakistan Machine Tool Factory;(xvii) Pakistan Engineering Corporation; (xviii) Telephone Industry of Pakistan; (xix) Oil & Gas Development Corporation (OGDCL) ;(xx) Pakistan Petroleum Limited (PPL);(xxi) Pakistan State Oil Company Ltd (PSO); (xxii) Sui Northern Gas Pipelines Ltd (SNGPL); (xxiii) Sui Southern Gas Companies Ltd.(SSGC);(xxiv) Pakistan Mineral Development Corporation (PMDC) - Salt and Coal Mines;(xxv) Malam Jabba Resort Limited;(xxvi) PTDC - Motels and Restaurants ;(xxvii) National Power Construction Corporation (NPCC);(xxviii) Jamshoro Power Generation Co;(xxix) Central Power Generation Co; (xxx) Northern Power Generation Co; (xxxi) Lakhra Power Generation Co; and (xxxii) nine Discos.
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