ISLAMABAD: The Cabinet Committee on Privatisation (CCoP) on Wednesday approved sell-off of the newly established 1,233-megawatt RLNG-based Balloki Power Plant and 1,230MW Haveli Bahadur Power Plant.

The CCoP meeting, chaired by Minister for Finance Asad Umar, also approved the divestment of five public sector entities, and authorised the Privatisation Commission to initiate the process for these transactions.

The cabinet committee approved privatisation of SME Bank Ltd, First Women Bank Ltd, Jinnah Convention Centre, Islamabad, Lakhra Coal Mines (now Lakhra Coal Development Company), and Services International Hotel, Lahore.

After detailed deliberations, it was decided to delist Pakistan Steel Mills, Pakistan International Airlines (PIA), Pakistan Railways, Utility Stores Corporation, National Highway Authority and the Civil Aviation Authority (CAA) from the privatisation list.

The Ministry of Industries was directed to put up an action plan for operationalisation of Pakistan Steel Mills within 45 days.

Similar instructions for improvement and revitalisation of other entities were given to the relevant ministries. In the case of the Civil Aviation Authority, it was noted that the entity performed a regulatory function and could not be privatised.

The CCOP noted that the listing of a large number of entities on the privatisation list for more than a decade had been detrimental to their operations as these were neither privatised nor any serious effort was undertaken to revitalise them.

Regarding financial institutions, the decision to delist National Bank of Pakistan was finalised. Delisting of Industrial Development Bank of Pakistan was also approved as the process for its winding up was already underway. For House Building Finance Corporation and National Investment Trust Limited, the Ministry of Finance was directed to submit recommendations for their retention or removal from the privatisation list.

The committee also decided not to privatise the Printing Corporation of Pakistan and Trading Corporation of Pakistan. However, the relevant ministries were directed to submit proposals for improvement in their working along with plan for disposal of their non-essential fixed assets.

The committee also directed the Privatisation Commission to ensure complete transparency in all its transactions.

The finance minister maintained that the process of divestment was meant to encourage and attract private sector partnership to turn around ailing PSEs by injecting capital, modernising through technological upgradation besides introducing best corporate practices.

The committee also directed the industries ministry to carry out a detailed review of all entities in its purview, and make recommendations for their revival or privatisation. Similarly, the Ministry of Commerce was directed to review the insurance and reinsurance sector and make recommendations.

In the case of gas sector utilities, the CCOP decided that privatisation of these entities should not be undertaken before putting in place a regulatory regime to create competitive market place. The committee directed the Ministry of Petroleum to take necessary action in that regard.

Secretary Privatisation Commission Rizwan Malik shared a detailed presentation on the Privatisation Programme pursued by the government over the last two decades. The committee discussed the objectives and rationale of the Privatisation Programme. It was noted that only one entity was privatised during the last five years, apart from divestment of shares in a few already privatised entities.

Published in Dawn, November 1st, 2018