ISLAMABAD – The Senate’s Standing Committee on Privatization was informedTuesday that the Privatization Commission was currently working on thestrategic sale of loss-making state-owned enterprises, including PSM, PIAand SME Bank in order to enhance their efficiency turning them intoprofitable entities.
The committee, which met here with Senator Mohisn Aziz in the chair,discussed the matters related to the privatization of PakistanInternational Airlines (PIA), Pakistan Steel Mills (PSM) and and otherloss-making organizations of the country.
Minister for Privatization Daniyal Aziz informed the meeting that thePrivatization Commission was currently working on the privatization ofSmall and Medium Enterprises Bank, Mari Petroleum Company Limited, PSM andPIA.
He said privatization of any entity was conducted through a transparentprocess and all the stakeholders, including the entity, administrative lineorganizations, regulatory bodies were taken on board and the cabinetcommittee on privatization supervised all the proceedings and accord thenecessary approval.
He said about 68 sick organizations were eating over Rs 650 billionannually, which could be spent on the provision of health, education, cleandrinking water and infrastructure building for the socio-economic uplift ofthe country.
He said the PIA was facing Rs 350 billion losses, whereas the governmentwas providing Rs 380 million to the PSM to pay monthly salaries of itsemployees.
By saving those amounts the government could spend about Rs 6 billion inevery district of the country to fulfill the social sector needs, he added.
Daniyal said the privatization board had approved off-loading of the 18.3percent shares of Mari Petroleum and fixed Rs 6 billion investment benchmark for the privatization of SME Bank.
The Secretary Privatization informed the meeting that protection ofemployees’ rights was on top of the government’s privatization agenda. TheCouncil of Common Interests had approved the privatization of PSM as itstotal liability stood at Rs 188 billion, he added.
The financial advisor of the PSM had made a transaction structure forleasing the core land and plant for 30 years, he said, adding theliabilities settlement plan was vital for the privatization of the entity.
He said the PSM had spent the provident fund and gratuity amounts of itsemployees and the liabilities of its 3,000 employees had reached Rs 15billion. – APP