ISLAMABAD: The Privatization Commission (PC) of Pakistan has announced plans to privatize 10 state-owned entities (SOEs) within the current fiscal year 2024-25, marking a significant move towards reducing government ownership in commercial enterprises.
Among the entities slated for privatization within the year are Pakistan International Airlines (PIA) and House Building Finance Company Limited (HBFCL), with transactions expected to be finalized by August 2024 and the end of July 2024, respectively.
In a detailed statement, the Privatization Commission outlined its ambitious timeline, including the completion targets for various state-owned entities:
- Pakistan International Airlines (PIA): The privatization process is targeted for completion by August 2024. The Commission has pre-qualified six parties for participation, with buy-side due diligence currently underway.
- House Building Finance Company Limited (HBFCL): The sale of HBFCL is aimed to be completed by the end of July 2024.
- Roosevelt Hotel (RHC) and First Women Bank Limited (FWBL): The transactions for these entities are also in advanced stages, with marketing for Roosevelt Hotel to commence post-approval by the federal cabinet, and FWBL being pursued under government-to-government mode with the UAE’s interest.
- Other entities: The list of SOEs to be privatized within the year includes ZTBL, PECO, SEL, IESCO, FESCO, and GEPCO, out of a total of 24 earmarked for privatization.
The Privatization Commission emphasized that the process for Power Generation Companies (GENCOs) will be phased, with a focus on privatizing efficient power plants (Combined Cycle) initially, while obsolete technology-based plants may be disposed of separately by the Power Division.
Regarding Distribution Companies (DISCOs), six out of eleven have been recommended for privatization, three for long-term concession, and two to be retained by the government.
The government’s approach aims to streamline operations, enhance efficiency, and attract private sector investment to sectors traditionally managed by SOEs. The phased five-year Privatization Programme (2024-29) seeks to reduce the federal footprint in the economy by prioritizing the privatization of loss-making SOEs while identifying profitable entities for strategic divestment.
The Privatization Commission affirmed its commitment to transparency and adherence to regulatory frameworks throughout the privatization process, ensuring that all transactions are conducted in accordance with legal, regulatory, policy, and technical requirements.
This comprehensive strategy underscores Pakistan’s efforts to foster economic growth, improve service delivery, and create opportunities for private sector participation in key sectors of the economy.
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