'49 state-owned entities to be privatised in five years'

Lahore Airport among eight public entities to be privatised in first phase

ISLAMABAD: The federal government has decided to privatise 49 state-owned entities over the next of five years.

According to a plan presented by Federal Privatisation Secretary Rizwan Malik, eight public entities including the Lahore Airport would be privatised during the first phase of the plan.

Other institutions included in the first phase are Haveli Bahadur Shah, Balloki Power Plant, First Women's Bank and SME Bank.

Malik presented the plan in a session of the Senate Standing Committee on Privatisation chaired by Mir Muhammad Yousaf Badini.

The secretary told the committee that two liquefied natural gas power plants would also be sold in the first phase of the privatisation plan. He added the government was aiming to complete the initial phase in a period of 12 to 18 months.

11 profitable entities shortlisted for sell-off

Sharing details of the second phase, Malik said 41 public-owned entities would be up for privatisation over a period of three to five years.

The secretary told the committee members that several small-scale state institutions had already been privatised and were now returning profits.

In October last year, the government decided to privatise only 11 entities – almost all profitable ones – and dropped all bleeding companies such as Pakistan International Airlines and Pakistan Steel Mills from its active list of privatisation.

The board had also recommended privatising four banking and insurance companies, three oil and gas sector companies, two LNG-fired recently constructed power plants, two hotels owned by PIA and one real estate sector transaction.

The board approved the strategic sale of the loss-making SME Bank Limited, the First Women Bank Limited, and the Pakistan Reinsurance Company Limited.

It also approved to divest the shares of the State Life Insurance Corporation on the stock exchange.

The board also approved three capital market transactions of the Oil and Gas Development Corporation Limited, the Pakistan Petroleum Limited and the Mari Petroleum Limited.