Privatisation Commission approves Rs124.9 crores for fiscal year 2023-24 

The Privatisation Commission (PC) on Thursday approved a Rs 1248.8 million budget for the fiscal year 2023-24.

According to PC, the Commission convened its latest Board meeting under the Chairmanship of Abid Hussain Bhayo. 

The meeting, attended by the Federal Secretary, Board members, and senior officials of the Ministry/Commission, covered several topics requiring the Board’s attention.

The Privatisation Commission (PC) was established as a sub-branch of the Finance Division, to implement the privatisation programme of the Government, in 1991.

The Commission is entrusted with the task of privatising federal government assets such as its shares in banks, industrial units, public utilities, oil, gas and transport companies, and infrastructure service providers in an open and transparent manner, under the PC ordinance 2000.

In the meeting, one significant agenda item entailed the presentation and subsequent approval of the Audited Accounts for the fiscal year 2013-2014. 

The Board expressed appreciation for the extensive deliberations carried out by the Audit Committee and PC management in finalising the audited accounts. 

The Board emphasised the importance of promptly completing the audited reports for the remaining years on priority.

In addition, the Board granted approval for the Budget Estimates of the PC for the fiscal year 2023-24, amounting to Rs 124.8 crores. 

These estimates, categorised under various heads of expenditure, will undergo further approval by the Federal Government as required by  PC Ordinance, 2000. Recognizing the necessity of financial sustainability in PC operations, the Board was pleased to constitute the “PC Board Investment Committee.” 

This committee will oversee the investment of available funds in accordance with the parameters provided in the PC Ordinance, 2000 and the instructions of the Federal Government.

The meeting also included a comprehensive presentation on the current status of the privatisation process for Pakistan Engineering Company Ltd (PECO). It was acknowledged that significant inherent issues have led to a temporary suspension of the transaction, with no imminent resolution in sight.

Consequently, the Board concluded that it is imperative to propose to the government that the administrative ministry take immediate actions on priority basis to address these issues before proceeding with the privatisation of Pakistan Engineering Company (PECO).

Moreover, the Board provided its approval for the recommendations put forth by the Transaction Committee concerning the House Building Finance Company Ltd. (HBFC), marking a positive advancement in the privatisation process. 

The Board also endorsed the organisational arrangement of the Privatisation Commission, which includes conducting in-house due diligence on entities proposed for privatisation to enhance the effectiveness of the transaction process. Additionally, the Commission will present meticulously researched policy proposals to the federal government, with the aim of fostering an enabling environment for the privatisation of state-owned enterprises, in line with the functions outlined in the Privatisation Commission Ordinance.

The Privatisation Commission remains committed to its mission of facilitating the efficient and transparent privatisation of state-owned entities, and these decisions and initiatives would further its endeavours to achieve the objectives. It is important to note that large state owned enterprises of Pakistan result in heavy bleeding of the country’s primary budget every year, causing billions of rupees of taxpayer’s money to go to waste.