ISLAMABAD            -        The Cabinet Committee on Privatization (CCoP) will consider approving transaction structures for five government entities to be privatised after Eid-ul-Azha.

An official in Privatization Commission informed that CCoP, likely to meet after Eid-ul-Azha, would consider the transaction structures of five public sector entities for approval. The entities including House Building Finance Corporation (HBFCL), Services International Hotel (SIH), Lahore, Jinnah Convention Center (JCC) First Women Bank Limited (FWBL)and shares in the profitable Pakistan Reinsurance Company Limited. The federal cabinet would approve the transaction structure after CCoP approval, he added.

The Privatisation Commission (PC) board had already given approval to the transaction structures for the five government entities. The PC board had directed that before placing these structures before CCoP and Cabinet, all required NOCs, documents, approval from CDA, PAF, and other relevant ministries be positively completed. In case of Jinnah Convention Center and Services International Hotel Lahore the status of these entities would be converted into commercial from amenities for the highest possible valuation. The subject conversion proposal will be submitted for approval of the Federal Cabinet.

According to the details, the government would sell equity stake of up to 100 percent along with management control in HBFCL. The PC board had approved to sell 82.64 percent shareholding of the government in FWBL. Meanwhile, the sale of SIH Property in Lahore would be through a bidding process. The area of the property to be sold is 15 Kanal, 3 Marla and 113 Square Feet with four-storey structure having built-up area of 93,850 square feet. The property is to be sold as commercial property.

The government would divest 20 percent shares in the Pakistan Reinsurance Company Limited, which will reduce overall government shareholding to 59 percent. The proposed divestment will allow the government to retain management control of the company. The government would sale JCC property through competitive bidding. The existing Jinnah Convention Centre structure will remain intact and prospective investors would be allowed to develop the vacant land.

Privatisation Division had shortlisted 10 entities which were scheduled to be sold out in financial year 2020-21 to achieve budgeted revenue of Rs100 billion. Privatisation Commission is anticipating to sale out much delayed two RLNG power plants 1223 MW Ballocki Power Plant and 1230 MW Haveli Bahadur Power Plants, revival of Pakistan Steel Mills plan, SME bank Limited, Services International Hotel Lahore and Jinnah Convention Centre, Islamabad in the second quarter of next financial year or by end of December 2020.

The government had budgeted Rs150 billion from privatization programme in last fiscal year. However, it failed to generate any amount due to the pandemic spread that had halted the privatization programme.