ISLAMABAD: The Senate Standing Committee on Privatization was informed that the appointment of a financial advisor for the privatisation of three electricity distribution companies will be done in the current year.
This was stated by a senior official of Privatization Ministry on Friday during a briefing to the Senate Standing Committee on Privatization presided over by Senator Muhammad Talal Badr that met to review privatisation programme as well as performance and working of the ministry and its attached departments, was informed appointment of a financial advisor for the privatisation of three electricity distribution companies will be done in the current fiscal year. The committee was informed that nine electricity distribution companies will be privatized in five years.
Secretary Ministry of Privatization informed the committee that of the total 84 institutions identified for privatisation in various ministries, 24 institutions have been selected for privatisation.
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The meeting was further informed that out of 24 institutions, four institutions including privatisation of PIA, Roosevelt Hotel, House Building Finance Company Limited (HBFCL), and First Women Bank Limited would hopefully be completed in the current fiscal year.
The standing committee has decided to seek a detailed report on the losses of government institutions and some members of the committee wondered as to why the profit-making institutions are being privatised.
The committee was further informed that the profit of these institutions has been shrinking and after privatisation profit of these institutions would increase. The committee was told that First Women Bank, HBFC, PRCL, and State Life are profitable companies.
Secretary Privatization Ministry further informed the committee that the privatisation of PIA, Roosevelt Hotel, House Building, and the First Women Bank will be done in the ongoing fiscal year. He added that PIA liabilities have reached Rs800 billion and every year government has been providing Rs100 to Rs125 billion to the national airline. He said that Rs260 billion of banks are owed to PIA, including the money of nine banks including Bank of Punjab, Standard Chartered Bank, Habib Bank, and National Bank.
He further stated that PIA is required to pay Rs20 billion to PSO and pending liabilities of Civil Aviation are Rs120 billion.
The committee was also told that the government’s objective is to get as many bids as possible from the bidders for PIA. The total assets of PIA stood at Rs160 billion and its liabilities are a major hurdle in its privatisation.
Copyright Business Recorder, 2024