In a move to meet its commitment to the International Monetary Fund (IMF), the government has approved a Rs105 billion transaction that swaps its ownership in the Pakistan Security Printing Company (PSPC) with the State Bank of Pakistan (SBP) in exchange for full control of Zarai Taraqiati Bank Ltd (ZTBL).
According to a report published by Dawn, the decision was made during a meeting of the Cabinet Committee on State-Owned Entities (CCoSOE), chaired by Finance Minister Muhammad Aurangzeb.
An official statement confirmed that the CCoSOE approved the share-purchase agreement, which involves the re-merger of NSPC with PSPC and the acquisition of SBP’s shares in ZTBL.
The approved transaction includes the transfer of NSPC’s ownership, previously managed under the Ministry of Finance, to SBP, merging it with PSPC, which SBP owns. The central bank will pay the Ministry of Finance Rs41.77 billion for the transfer.
The deal is part of a broader effort to streamline state-owned entities and fulfill the IMF’s requirement for SBP to divest from all banks and financial institutions by June 30, 2025, in order to resolve any conflict of interest.
In return, the federal government will acquire SBP’s full shareholding in ZTBL for Rs62.9 billion. The difference of about Rs21.16 billion between the two transactions will be settled against the government’s share in the central bank’s retained profits.
The Finance Division will purchase SBP’s 4.015 billion equity shares in ZTBL for Rs8.473 billion, along with its preference shares in ZTBL valued at Rs54.465 billion. The remaining proceeds from the NSPC transaction will be adjusted against SBP’s retained surplus profit.
Additionally, the CCoSOE also restructured the boards of several power generation companies to ensure compliance with the amended SOEs Act and policy. These changes were approved by the Prime Minister.
The decision to retain Pakistan Railways as a “strategic and essential” asset in government hands was also confirmed during the meeting.
