ISLAMABAD: The Ministry of Industries and Production has identified 16 out of 29 organizations under its control for possible closure or privatization as part of its broader strategy to enhance efficiency and reduce losses. Entities failing to meet performance benchmarks within six months will be shut down, while others will be reviewed under public-private partnership models.
During a Senate Committee briefing, Minister of Industries and Production Rana Tanveer Hussain emphasized, “We will closely monitor these organizations over the next six months. If they fail to deliver, we will not hesitate to shut them down.” Key organizations under review include the National Fertilizer Corporation (NFC), the Pakistan Automobile Corporation (PACO), the National Productivity Organization (NPO), and the Utility Stores Corporation.
The Utility Stores Corporation, which operates 4,300 outlets, was originally slated for closure but is now added to the privatization list. Of these, 2,400 stores are running at a loss, particularly in Balochistan and Gilgit-Baltistan, while 1,900 are profitable. In August, the Privatization Commission hired a financial advisor for phased privatization.
Minister Hussain reiterated, “Our focus is to support Pakistan’s industrial and retail sectors through efficient restructuring.”
The Additional Secretary highlighted that critical entities like the Small and Medium Enterprises Development Authority (SMEDA) must remain operational due to their importance in the industrial system. He warned that shutting them down could have severe repercussions.
Progress on rightsizing was also discussed, with Cabinet approvals already in place for major decisions. Some Section 42 companies initially approved for closure are under review to align strategies with economic priorities.
Asset portfolios of organizations like Pakistan Engineering Company and Republic Motors were also reviewed. Pakistan Engineering Company, burdened with PKR 7-8 billion in debt, holds assets valued at PKR 19 billion. Republic Motors faces encroachment issues on properties worth PKR 10 billion and plans to hire legal teams to reclaim them.
Senator Aon Abbas Buppi cautioned the government against hastily shutting down institutions, particularly in sensitive regions like Multan, urging a balanced approach to safeguard jobs and essential industries.
