ISLAMABAD – The PTI-led government has plans to privatise 20 public sector entities in the first phase of its privatisation programme.
The privatisation of loss-making Pakistan International Airlines (PIA) has not been included in the first phase but Pakistan Steel Mills and two LNG based power plants are included.
An official of the Privatization Commission informed that government would restructure the PIA before including it in the active list of the privatization.
The government is expecting to complete the privatization of two LNG power plants in next few months.
The privatization of two LNG power plants including 1223 MW Balloki Power Plant, 1230 MW Haveli Bahadur Power Plant, SME Bank Limited would earn Rs300 billion for the government during current fiscal year.
The government had targeted to generate Rs800 billion from non-taxpayers during this fiscal year.
Finance ministry had projected Rs300 billion from privatization of two RLNG power plants, Rs 200 billion from cellular companies and Rs 300 billion as State Bank of Pakistan profit while non-tax revenue projected from other accounts would be in addition to this.
The official further informed that government is also expecting to complete the privatization of some other PSEs including SME Bank Limited, First Women Bank Limited, Services International Hotel, Lahore and Jinnah Convention Centre during current fiscal year.
“The amount generated from privatization would exceed from Rs300 billion if the government completes the privatization of SME Bank Limited, First Women Bank Limited, Services International Hotel, Lahore, Jinnah Convention Centre,” the official added.
The government had included 20 PSEs for privatization in the first phase. The PSEs included 1223 MW Balloki Power Plant, 1230 MW Haveli Bahadur Power Plant, SME Bank Limited, First Women Bank Limited, Services International Hotel, Lahore, Jinnah Convention Centre, Islamabad, Mari Petroleum Limited (divestment of remaining shares), Pakistan Steel Mills, Pakistan Engineering Company (PECO), Heavy Electrical Complex (HEC), Sindh Engineering Limited (SEL), House Building Finance Corporation (HBFC), Pakistan Re-Insurance Co. Ltd. (PakRe), Oil and Gas development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), Guddu Power Plant (747 MW) – Central Power Generation Company Ltd – CPGCL (GENCO – II), Nandipur Power Plant (425 MW) – Northern Power Generation Company Ltd – NPGCL (GENCO – III),State Life Insurance Corporation (SLIC), Islamabad Electric Supply Company (Iesco) and Lahore Electric Supply Company (Lesco).
It is worth mentioning here that the previous PML-N government had also privatised some PSEs, but only those which were profitable and on which it faced no pressure from political parties and labour unions. The last government had also completed the privatisation of 5 PSEs, out of 26 transactions initiated, thereby generating $1.124 billion. It had privatised United Bank Limited, Pakistan Petroleum Limited, Allied Bank Limited, Habib Bank Limited and National Power Construction Company.