ISLAMABAD   -  A parliamentary committee was informed on Thursday that privatization of Pakistan Steel Mills and Jinnah Convention Center was stalled due to different reasons.

The meeting of the Senate Standing Committee on Privatization chaired by Senator Muhammad Tallal Badar was held at the Parliament House here. The meeting began with a briefing by the Secretary of Privatization 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 Rs4,389 million, while the total expenses were Rs1,992 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 Mills was halted due to the withdrawal of bidders, and the Jinnah Convention Center was stalled due to diligence issues and observations from the CDA.

Furthermore, the Chairman of the Committee recommended that privatization officials 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.

The Chairman of the Committee 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 favour. 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 Rs499 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.

The Chairman, 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.

Senator Muhammad Tallal 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.

In attendance were 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.

Meanwhile, Federal Minister for Privatization, Board of Investment and Communications Abdul Aleem Khan has said that the privatization of loss-making State Owned Entities is priority so this important issue should be dealt with quickly according to rules and regulations.

He added that the process of privatization is having positive impact on the country’s economy and the rating of “Moody’s” is a clear proof of it. Federal Minister for Privatization Abdul Aleem Khan was presiding over the 223rd meeting of Privatization Commission Board in which various issues and aspects of privatization including PIA Roosevelt Hotel were discussed in detail. Federal Minister Abdul Aleem Khan said there is no doubt that Privatization will reduce the burden on the national exchequer that’s why more State Owned Entities are being listed for privatization.

He asked for timely preparation of documents which is of utmost importance and where it is necessary the process of secrecy related to the transactions of privatization should be ensured by all means. Federal Minister Abdul Aleem Khan directed that the formalities of privatization be completed in a phased and transparent manner for which the Privatization Commission Board will resolve the issues with mutual consultation keeping in view the wider national interest.

Federal Secretary Privatization briefed the PC Board Meeting on the technical issues of privatization while Board Members Pir Saad Ehsanuddin, Rasool Bakhsh, Parvez Afzal Khan, Naheed Memon, Khurram Shehzad, Javed Bashir Sheikh and Muhammad Jahanzeb Khan tabled different proposals regarding Privatization and expressed their views and suggestions regarding different issues. Federal Minister Abdul Aleem Khan observed that in the light of the recommendations of the Privatization Commission Board final decision will be taken by the Cabinet Committee. The meeting of Privatization Commission Board also approved the proceedings of the previous meeting of PCB.