Privatisation of three PSEs to be completed within 2022, Senate body told

ISLAMABAD – Privatisation Commission on Thursday informed a parliamentary committee that privatisation of three public sector entities, Heavy Electrical Complex, House Building Finance Corporation and First Women Bank Limited, would be completed within this calendar year (2022).

The Privatisation Commission (PC) has said that it is working simultaneously on privatisation of around 20 public sector entities. Meanwhile, it has completed privatization of Services International Hotel, Lahore and generated Rs1.95 billion. The PC informed the Senate Standing Committee on Privatization that privatisation of several PSEs are in advance stages, which would be completed in next few months. Meeting was held under the chairmanship of Senator Shammim Afridi.

The parliamentary committee has discussed the privatization of Heavy Electrical Complex (HEC), House Building Finance Corporation and First Women Bank Limited. The PC informed that privatisation process of HEC is almost completed. The officials informed that the bidding of HEC will be finalised till 19th January 2022. Earlier, the bidding was expected on 12th January. However, later it was delayed for one week, till 19th January. The chairman Committee directed the PC to invite senators in the bidding ceremony of HEC. Senate’s standing committee was informed that HEC was established in 1991 and its major function was to manufacture transformers. The HEC is owned by Ministry of industries and Production, they added. However, currently the HEC only carries repairing work and cannot manufacture new transformers due to lack of capital, they further added. The Committee was informed about the main reasons behind the privatization of HEC. 

Discussing the privatisation programme of House Building Finance Corporation (HBFC), the ministry informed the Committee that HBFC was corporatized in 2007 and government of Pakistan and State Bank of Pakistan hold 9.69pc and 90pc shares respectively in this corporation. The major function of HBFC was to provide home loan facility to lower and middle class section of the country, they added. As of June 2021, the net assets of HBFC are 20 billion rupees. Senator Aon Abbas inquired the ministry that what causes delay in the privatisation of this corporation. Minister for privatization informed the Committee that ministry is dependent on Finance Ministry and State Bank of Pakistan for privatisation of corporation and this is why privatisation of HBFC has been delayed so far. However, the privatization of HBFC will be finalized by the June of this year, Ministry informed.

While discussing the privatization programme of First Women Bank, the ministry informed the Committee that First Women Bank was established in 1989 and 83pc of its shares are held by government of Pakistan and 2pc by National Bank of Pakistan (NBP). The main focus of this bank was to meet the special needs of women. In 1996, speculation of transaction in foreign trade cost 31 crore rupees loss to the bank, ministry informed. The bank has total 42 branches in the country and a paid up capital of Rs.4.1 billion as un-audited financials 2020, they added. The ministry also informed the Committee that the Ministry of Finance has given the deadline till December 2022 for the privatisation of bank. The chairman Committee was of opinion that hurdles in the privatization of corporation must be removed so that the country can get rid of these loss making corporations.

Article source: https://nation.com.pk/14-Jan-2022/privatisation-of-three-pses-to-be-completed-within-2022-senate-body-told