ISLAMABAD-The incumbent government is working to privatise 19 Public Sector Entities (PSEs) simultaneously including Pakistan Steel Mills (PSM) and Pakistan International Airlines owned Roosevelt Hotel, New York. The privatisation commission had already started the privatisation of federal government owned properties from 7th September. The privatisation commission had privatised 20 properties in four cities with Rs1 billion proceeds. 

The process of selling federal government owned properties would culminate on 28th of September with the auction of the biggest property, worth more than Rs5 billion. The government is expecting to generate more than the estimated amount of Rs6.62 billion from selling properties. The government had already decided that 90 per cent of sale proceed will go for debt retirement and rest of the 10 per cent for poverty alleviation.

Meanwhile, the privatisation commission is also working on privatisation of 19 PSEs simultaneously. An official of the commission informed that government is working to complete the privatisation of at least five to six PSEs during current fiscal year. He said that COVID-19 had affected the privatisation process in last fiscal year. Otherwise, the government would have complete privatisation of few PSEs in previous financial year.

According to the active privatisation programme, the government is working on privatisation of (1) 1223 MW Balloki Power Plant (2) 1230 MW Haveli Bahadur Power Plant (3) SME Bank Limited (4) First Women Bank Limited (5) Services International Hotel, Lahore (6) Jinnah Convention Centre, Islamabad (7)Mari Petroleum Limited (divestment of remaining shares) (8) Pakistan Steel Mills (9)Pakistan Engineering Company (PECO) (10)  Heavy Electrical Complex (HEC) (11) Sindh Engineering Limited (SEL) (12) House Building Finance Corporation (HBFC) (13) Pakistan Re-Insurance Co. Ltd. (PakRe) (14) Oil and Gas development Company Limited (OGDCL) (15) Pakistan Petroleum Limited (PPL),  (16) Guddu Power Plant (747 MW) – Central Power Generation Company Ltd – CPGCL (GENCO – II),  (17) Nandipur Power Plant (425 MW) – Northern Power Generation Company Ltd – NPGCL (GENCO – III), (18) State Life Insurance Corporation (19) PIA-IL Roosevelt Hotel, New York.

In the first phase, the government is likely to complete the privatisation of two RLNG power plants 1223 MW Ballocki Power Plant and 1230 MW Haveli Bahadur Power Plants, SME bank Limited, Services International Hotel Lahore and Jinnah Convention Centre, Islamabad.  In annual budget 2020-21, the federal government had budgeted an amount of Rs100 billion from the privatisation programme during current fiscal year.  However, the economic experts believed that amount could further go up if the government completes the privatisation of two RLNG power plants 1223 MW Ballocki Power Plant and 1230 MW Haveli Bahadur Power Plants and few others.

It is worth mentioning here that the government had budgeted Rs150 billion from privatisation programme in last fiscal year 2019-20. However, it failed to generate any amount due to Covid-19 that had halted the privatisation programme. The government even had not started the process of selling government owned properties due to the COVID-19.