ISLAMABAD: The Cabinet Committee on Privatisation (CCoP) on Wednesdayapproved proposal of Privatization Commission to divest five state-ownedentities (SOEs) in the first phase.
The CCoP which met here under the chairmanship of Finance Minister AsadUmar approved the divestment of SME Bank Ltd, First Women Bank Ltd, JinnahConvention Centre, Islamabad, Lakhra Coal Mines (now Lakhra CoalDevelopment Company), and Services International Hotel, Lahore.
The committee also gave a go-ahead to Privatisation Division to undertakethe process for privatisation of newly established 1233 MW Balloki PowerPlant and the 1230 MW Haveli Bahadur Power Plant.
The committee also decided not to privatise the Printing Corporation ofPakistan and Trading Corporation of Pakistan.
However, the relevant ministries were directed to submit proposals forimprovement in their working along with plan for disposal of theirnon-essential fixed assets.
After detailed deliberations, it was decided to delist Pakistan SteelMills, PIA, Pakistan Railways, Utility Stores Corporation, NationalHighways Authority and Civil Aviation Authority from the privatisation list.
Ministry of Industries was directed to put up an action plan foroperationalisation of Pakistan Steel Mills within 45 days. Similarinstructions for improvement and revitalisation of other entities weregiven to the relevant ministries.
In the case of CAA, it was noted that the authority performed a regulatoryfunction and could not be privatised.
During the meeting, the secretary privatization commission made a detailedpresentation to the committee on the privatisation program pursued by thegovernment over the last two decades.
The committee discussed the objectives and rationale of the program.
It was noted that only one entity was privatised during the last fiveyears, apart from divestment of shares in a few already privatised entities.
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The committee noted that the listing of a large number of entities on theprivatisation list for more than a decade had been detrimental to theiroperations as these were neither privatised nor any serious effort wasundertaken to revitalise them.
The committee also directed the Ministry of Industries to carry out adetailed review of all the entities in its purview, and makerecommendations for their revival or privatisation.
Ministry of Commerce was similarly directed to review the insurance orreinsurance sector and make recommendations.
In the case of gas sector utilities, the CCOP decided that privatisation ofthese entities could not be undertaken before putting in place a regulatoryregime to create competitive market place. The committee directed theMinistry of Petroleum to take necessary action in that regard.
Regarding financial institutions, it was decided to delist National Bank ofPakistan. Delisting of IDBP was also approved as the process for itswinding up was already underway.
In case of HBFC and NITL, Ministry of Finance was directed to submitrecommendations for their retention or removal from the privatisation list.
The committee also directed the Privatization Commission to ensure completetransparency in all its transactions.
The finance minister maintained that the process of divestment was meant toencourage and attract private sector partnership to turn around ailing PSEsby injecting capital, modernising through technological upgradation besidesintroducing best corporate practices. -APP
