Privatisation Commission seeks higher annual budget after PIA sale

Following the successful privatisation of Pakistan International Airlines, the Privatisation Commission has sought an increase in its annual budget to hire market-based experts, citing the need to expand and accelerate the privatisation process in the coming year. For fiscal year 2024–25, Rs8.17 billion was approved for the commission.

According to a news report, the proposal was presented to the Senate Standing Committee on Privatisation, which met on Friday under the chairmanship of Senator Dr Afnan Ullah Khan to review budget allocation and utilisation for the past six months, according to the Senate Secretariat.

The committee was informed that both the Privatisation Division and the Privatisation Commission currently operate with limited budgets, largely covering employee-related expenditures. The commission said it had proposed an enhanced budget to allow recruitment of specialised market experts on competitive salaries to strengthen institutional capacity and manage multiple transactions simultaneously.

Committee members questioned the need for additional hiring given the completion of the PIA transaction with the existing workforce. In response, the commission said one market expert can typically manage only one or two privatisation projects at a time, and that sector-specific expertise, particularly for power distribution companies, is essential.

The committee chair expressed agreement in principle with the proposal to hire experts to improve operational capacity. Members were also informed that the Ministry of Privatisation currently has no Public Sector Development Programme projects and does not require PSDP allocations.

Separately, the committee reviewed the PIA privatisation process and was told that completion of remaining formalities is expected within 90 to 120 days. 

Senator Palwasha Mohammad Zai Khan sought details of assets held by PIA Holding Company Limited, including hangars, spare parts and technical facilities, with officials assuring the information would be shared at the next meeting.