Govt moves ahead with sale of 30% Pakistan National Shipping Corporation stake to NLC

The federal government has formed two sub-committees to finalise the financial, commercial and legal terms of the proposed sale of a 30% stake in Pakistan National Shipping Corporation (PNSC) to the National Logistics Corporation (NLC), including the sale price, payment plan, dividend distribution, use of proceeds and mechanism for transferring management control, according to a briefing by the Ministry of Maritime Affairs to the Economic Coordination Committee (ECC).

The first sub-committee, headed by the Adviser to the Prime Minister on Privatisation, includes the secretaries of Finance, Law & Justice and Maritime Affairs, the Chairman of the Securities and Exchange Commission of Pakistan (SECP), and the DG NLC.

It will finalise the sale price, payment structure, dividend distribution and the mechanism for injecting proceeds into PNSC.

The second sub-committee, chaired by the Secretary, Law & Justice Division, includes representatives of the Finance, Maritime Affairs and Privatisation divisions, SECP and NLC.

It will handle the legal side of the transaction, including the Share Purchase Agreement, Shareholders’ Agreement and transfer of management control.

The ECC endorsed the proposal and stressed the need to involve the private sector in future initiatives to improve efficiency and maximise the maritime sector’s potential.

The Ministry of Maritime Affairs also proposed an Implementation Committee, chaired by the Adviser to the Prime Minister on Privatisation and co-chaired by the Minister for Maritime Affairs, to prepare a roadmap and oversee the transaction.

The government had earlier approved in principle the acquisition of a 30% stake in PNSC by NLC, along with management control and consolidation rights, subject to applicable laws.

PNSC is listed on the Pakistan Stock Exchange, with the federal government holding 87.56% of its shares. The general public owns 10.87%, while the PNSC Employees Empowerment Trust holds 1.57%.

The corporation operates a fleet of 14 vessels, including three recently acquired ships. It reported a net profit of Rs30 billion in FY2022-23, Rs19.4 billion in FY2023-24 and Rs20.4 billion in FY2024-25.

PNSC was established under the PNSC Ordinance, 1979, which was amended in 2023 and 2024 to align it with the State-Owned Enterprises Act, 2023.