By Staff Reporter
ISLAMABAD: The Privatisation Commission board recommended adding three state-owned enterprises to its divestment program while removing two others, as the government pushes ahead with efforts to streamline public assets and bolster fiscal health.
The board, following input from its investment committee, cleared Saindak Metals Ltd., Pakistan Minerals Development Corporation and National Insurance Company Ltd. for inclusion in the active privatization list, according to a statement released on Monday.
The committee had evaluated 15 SOEs referred by various ministries, determining that only these three met the criteria for potential sale, while the remaining 12 were deemed not viable for divestment. At the same time, the board endorsed delisting Sindh Engineering Ltd. and Utility Stores Corp. from the program. Sindh Engineering has been non-operational since the 2007-08 fiscal year and holds only litigation-encumbered land as its tangible assets. For Utility Stores, operations halted after a government decision, with the corporation’s liabilities far outstripping its assets.
The moves underscore Islamabad’s broader strategy to reform state-owned entities and consolidate public finances amid persistent economic pressures. Pakistan has long grappled with underperforming SOEs that drain the budget, prompting successive governments to pursue privatisations as a way to raise revenue and improve efficiency.
Reaffirming its approach, the PC board stressed that the privatisation programme will align with the government`s broader SOE reform and fiscal consolidation framework. Decisions will be guided by transparency, market feasibility, and the protection of public interest.
The board emphasised that only those entities that meet viability and transaction-readiness criteria will be pursued for privatisation. Administrative ministries may explore alternative options, including liquidation, for SOEs deemed not viable for sell-off.
Officials have previously signalled that privatization proceeds could help narrow the fiscal deficit, though progress has been uneven due to regulatory hurdles, investor caution and political sensitivities.
The addition of Saindak Metals, which operates copper and gold mines in Balochistan, and Pakistan Minerals Development, involved in salt and coal extraction, could attract interest from resource-focused buyers. National Insurance, a state-backed insurer, might appeal to financial firms seeking to expand in the South Asian market.
Delistings like those of Sindh Engineering and Utility Stores highlight the challenges of dealing with legacy assets burdened by legal disputes or insolvency. The government has shuttered or restructured several such entities in recent years as part of International Monetary Fund-backed reforms.
Copyright © 2021 Independent Pakistan | All rights reserved
