ISLAMABAD: Prime Minister Shehbaz Sharif on Monday directed officials to complete all stages of the government’s privatisation programme within the prescribed timelines.
Presiding over a meeting in Islamabad reviewing the privatisation of state-owned enterprises, the prime minister instructed relevant ministries and institutions to work in close coordination to ensure that all targets and deadlines under the privatisation programme were met, according to a statement issued by the Prime Minister’s Office (PMO).
The meeting was attended by Deputy Prime Minister and Foreign Minister Senator Muhammad Ishaq Dar, Federal Ministers Khawaja Muhammad Asif, Jam Kamal Khan, Ahad Khan Cheema, Sardar Awais Khan Leghari and other senior officials, the PMO said.
PM Shehbaz said the privatisation structure for the Zarai Taraqiati Bank Limited (ZBTL) should be designed in a way that safeguards the bank’s primary role in agricultural financing.
“It must be ensured that even after privatisation, the Zarai Taraqiati Bank’s focus on providing agricultural loans and financial resources to small and medium-scale farmers remains intact,” he was quoted as saying by the statement.
The premier noted that improving farmers’ access to financial resources was “essential” for increasing per-acre agricultural productivity, especially for small and medium-scale cultivators, adding that agricultural development remained critical to Pakistan’s economic growth and food security.
Officials from the privatisation ministry briefed the meeting on progress under the government’s privatisation programme and future targets. The meeting was told that 27 state-owned enterprises were included in the programme, which was being implemented in three phases.
According to the briefing, the financial closing process for the privatisation of Pakistan International Airlines (PIA) and First Women Bank has been completed. Officials said the first financial closing and transfer of management control of PIA were completed on June 29.
The meeting also reviewed progress on the planned privatisation of Islamabad Electric Supply Company (Iesco), Faisalabad Electric Supply Company (Fesco) and Gujranwala Electric Power Company (Gepco).
Officials said expressions of interest (EOIs) had been advertised for these companies, with submission deadlines set for Aug 7 for Fesco, Aug 21 for Gepco and Sep 7 for Iesco.
The meeting was also told that international companies have expressed interest in these distribution companies, while roadshows with investors are also underway, according to the PMO.
Fesco, Gepco and Iesco collectively serve more than 14 million consumers across major industrial, commercial and urban centres of Punjab, the Islamabad region, and parts of Azad Jammu and Kashmir.
The transaction offers investors an opportunity to acquire between 51 per cent and 100pc shareholding, along with management control, in each of the three distribution companies.
Officials also updated the prime minister on progress on the privatisation of ZTBL, stating that the transaction structure was being designed to protect the bank’s agricultural lending mandate.
The meeting further reviewed progress on the planned privatisation of Islamabad International Airport, Jinnah International Airport in Karachi and Allama Iqbal International Airport in Lahore.
The PM directed officials to maintain close oversight of all ongoing privatisation transactions and ensure their completion according to the agreed timelines.
The premier issued these instructions three days after Interior Minister Mohsin Naqvi’s statement saying that the system had “collapsed”, and that things would not get fixed as long as “the present system is not reset”.
Presiding over a separate meeting on private investment, PM Shehbaz directed officials to prepare, at the earliest, a roadmap for establishing a private equity fund to promote investment, support small and medium-sized enterprises (SMEs) and encourage sustainable economic growth, according to his office.
He asked officials to submit a comprehensive plan for developing both Pakistan’s public equity market and a private equity fund to improve access to investment capital and help attract foreign investment.
“The promotion of private investment is essential for the country’s economic growth,” the premier said according to another statement issued by the PMO.
He said that private equity funds could serve as an effective catalyst for investment, business expansion and job creation, adding that sectors including mining, agriculture, livestock, energy and information technology had the potential to become key drivers of Pakistan’s economic growth.
PM Shehbaz said a stronger public equity market could provide an important financing avenue for investment in these sectors. He noted that the banking sector’s contribution to investment financing remained limited, making the development of alternative sources of capital increasingly important.
The premier noted that the government was prioritising policies aimed at strengthening the economy on a sustainable basis through private sector-led investment, industrial growth and export promotion.
DPM Dar, Minister of State Bilal Azhar Kayani, Special Assistant to the Prime Minister Haroon Akhtar, and senior government officials attended the meeting, the PMO said.
