The Senate Standing Committee on Privatization has stressed the need of prioritizing national interests and collaborative support for privatization. Senator Muhammad Tallal Badar chaired the meeting of Senate Body held at Parliament House. Senator Bilal Ahmed Khan, Senator Khalida Ateeb, Senator Khalil Tahir, Senator Nadeem Ahmed Bhutto, the Secretary of Privatization, and the senior officials from the concerned department attended the meeting. Secretary Privatization briefed the meeting on the expenses incurred and proceeds received from privatization over the last five years. It was reported that the total proceeds during this period amounted to 4,389 Million, while the total expenses were 1,992 Million. The committee members critically examined the list of companies where transactions were impeded. The Secretary explained that the National Power Park Company was not privatized by the government. Similarly, the Privatization of Pakistan Steel Mill was halted due to the withdrawal of bidders, and the Jinnah Convention Center was stalled due to due diligence issues and observations from the CDA. Chairman Committee recommended that privatization officials should provide details on the expenditure of privatized DISCOs, along with a financial analysis, in the next meeting.

The Chairman also emphasized the need to call upon the Power Division for detailed scrutiny and to outline a way forward for privatization. Senator Badar emphasized that often political interests are put ahead of national interests in one way or another and that ends up against what is in Pakistan’s favor. He also stressed that if PIA or the steel mill collapses, neither the interests of the employees nor those of Pakistan will be protected. The Secretary (privatization) also remarked that privatization will only be successful if all stakeholders support it. If everyone agrees that the concept is sound, then it should be implemented moving forward. He added that this program can only succeed if everyone collaborates and provides their support. In addition, The Secretary of Privatization updated the committee on the ongoing privatization of Pakistan International Airlines Corporation Limited (PIACL). He reported that since 2015, PIACL has accumulated liabilities of Rs. 499 billion, with a loss of Rs. 75 billion in 2023 alone. The total liabilities have now risen to Rs. 825 billion, while the total assets stand at Rs. 161 billion. The Secretary also discussed the corporate and regulatory actions taken following a Cabinet decision.

Additionally, he informed the committee about a meeting held on June 3, 2024, where six interested parties were pre-qualified: Fly Jinnah Limited, Air Blue Limited, Arif Habib Corporation Limited, a consortium led by Y.B. Holdings (Private) Limited, a consortium led by Pak Ethanol, and a consortium led by Blue World City. Senator Muhammad Tallal Badar stressed that PIA has a lot of potential. He stated that there was a time when not a single PIA flight was available for Karachi, and their capacity was exceeded. The potential is immense, but PIA's current state is such that it cannot even bear its burden, let alone anyone else's. The Chairman Senate Body emphasized that the PIA transaction is vital for the future of privatization and the economy of Pakistan. He stated that the government is fully committed to completing this process by all means, and praised the Privatization Commission for its excellent work. He expressed optimism that this will lead to healthy competition, and after many decades, the transaction will be successfully completed within the next two months.

Credit: Independent News Pakistan