In a significant move aimed at restructuring Pakistan’s state-owned enterprises (SOEs), the Cabinet Committee on Privatisation (CCOP) convened on Friday, approving 24 entities for the privatisation programme. Chaired by Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar, the committee directed the Ministry of Privatisation to strategize the phasing of each entity in consultation with the relevant ministries.
The decision follows the presentation of a phased Privatisation Programme (2024-29) by the Ministry of Privatisation, crafted upon recommendations from the PC Board. The meeting, attended by key stakeholders including the finance minister, minister for commerce, and governor State Bank of Pakistan, underscored the imperative to prioritize the privatisation of loss-making entities. Notably, even profitable SOEs were deemed eligible for privatisation.
With deliberations revolving around privatisation policy guidelines and scrutinizing 84 SOEs under the SOE Act and Policy, the CCOP resolved that 40 entities categorized as Strategic or Essential would undergo evaluation by the Cabinet Committee on State-Owned Enterprises (CCoSOE). Those not falling under these categories would be integrated into the Privatisation Programme.
Furthermore, the CCOP instructed the Ministry of Privatisation to engage with respective ministries regarding the exclusion of 18 SOEs from the programme, with finalized proposals to be presented at the next CCOP meeting. The urgency was stressed for ministries/divisions to present their cases of Strategic and Essential SOEs to CCoSOE promptly, ensuring the formulation of a comprehensive phased privatisation programme.
Among the matters discussed, the proposal for the transfer of 322,460,900 shares of OGDCL from the Privatisation Commission’s CDC’s account to the Ministry of Energy (Petroleum Division) was deliberated. However, the decision was deferred, pending a holistic examination by the Law and Justice Division on the provisions of the Sovereign Wealth Fund Act 2023, with recommendations slated for the next CCOP session.
The approval of these entities for privatisation reflects Pakistan’s commitment to enhancing efficiency and competitiveness within its public sector, signaling a significant stride towards economic reform and development.
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