By Staff Reporter
ISLAMABAD: The government has tapped a consortium led by Next Capital Limited as financial advisers to oversee the sale of Zarai Taraqiati Bank Limited (ZTBL), a state-owned agricultural lender, according to an official statement.
The decision advances Islamabad’s privatization drive, a cornerstone of its economic reform agenda tied to International Monetary Fund (IMF) loan conditions.
The Privatization Commission (PC) Board, chaired by Muhammad Ali, Adviser to the Prime Minister on Privatization, greenlit the appointment after a competitive bidding process. The Next Capital-led group outscored five other contenders, including consortiums headed by Arif Habib Limited, A.F. Ferguson, AKD Securities Limited, Bridge Factor, and JS Bank.
“ZTBL is a priority in our privatization pipeline,” the Privatization Commission said in a statement. “Appointing a top-tier consortium reflects our commitment to a transparent and timely process.”
Pakistan’s privatization push, spurred by successive IMF agreements, seeks to cut fiscal losses from struggling state-owned enterprises (SOEs), enhance governance, and draw private investment.
The IMF has long pressed for divestitures like ZTBL’s to shrink the state’s commercial role and shore up an economy grappling with high inflation and fiscal strain. A $7 billion IMF loan, approved last year, hinges on such reforms.
ZTBL, a linchpin of Pakistan’s rural economy, provides credit and banking services to farmers. Its sale aligns with efforts to overhaul the financial sector and reduce public sector sprawl, a pressing need as Pakistan navigates economic challenges.
The PC Board also established a Negotiation Committee to finalize the Financial Advisory Services Agreement (FASA) with the consortium, paving the way for the transaction’s next steps.
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