Govt asked to keep major share in Pak Reinsurance Company

Published October 4, 2022
Chairman Abid Hussain Bhayo chairs a meeting of the Privatisation on Monday. — Photo courtesy: PID
Chairman Abid Hussain Bhayo chairs a meeting of the Privatisation on Monday. — Photo courtesy: PID

ISLAMABAD: The board of Privatisation Commission at its meeting on Monday unanimously endorsed that the federal government must keep its majority in the Pak Reinsurance Company (PRCL), and decided to place the proposal to the next meeting of the Cabinet Committee on Privatisation (CCoP).

In 2019, the CCoP had decided divestment of 20 per cent of the government’s shares of PRCL through the secondary public offering. However, the matter remained suspended on account of lack of consensus among the stakeholders: the ministry of commerce, privatisation commission, SECP and SLIC.

The PC board’s approval was sought about the strategy to resolve different issues of Sindh Engineering Limited (SEL) and Pakistan Engineering Company (Peco) which have blocked the privatisation. It was briefed that the constitution of SEL Board and appointment of a permanent managing director will enable the implementation of necessary decisions with regard to its privatisation.

The board members proposed that the matter may be placed before the CCoP in its upcoming meeting.

The PC board was apprised of the current status of Pakistan Steel Mills (PSMC) and some unresolved matters regarding its revival.

The board discussed those bottlenecks and proposed early resolution of the matters involving all stakeholders from the federal government at the earliest.

The board was also briefed about the privatisation of House Building Finance Company Limited (HBFCL), as privatisation commission, along with financial advisers, are engaged in marketing exercise of the entity. Fresh expression of interest (EOI) and state of qualification (SOQ) have been advertised for acquisition of up to 100 per cent shares of HBFCL.

The decision to advertise the EOI afresh was taken to make the transaction more competitive and transparent.

Federal Minister and Chairman of Privatisation Comm­ission Abid Hussain Bhayo said that unless we build a system of strong communication and cooperation among the stakeholders, the privatisation plan will not run on fast track.

Published in Dawn, October 4th, 2022

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