ISLAMABAD: Senate Standing Committee on Privatisation here on Wednesday was informed that total borrowing and accumulate losses of Pakistan Still Mills (PSM) and Pakistan International Airlines Company limited (PIACL) was stood at Rs 176.6 billion and Rs 316 billion respectively.
The committee met here with Senator Mohsin Aziz in the chair and discussed the working performance of the Ministry of Privatisation and details of the privatisation, which had been undertaken during last four years.
Briefing the committee, Director General Privatisation Commission, Mukhtar Waris apprised the meeting that annual losses of ailing public-sector enterprises have been swelled to an unprecedented level and it was increasing the importance of the restructuring and private sector participation to ease pressure on the fiscal deficit.
He informed that the government had extended bailout package to PSM amounting Rs 76 billion including employee’s salaries as of August 31, 2017, however total debt and accumulated losses of PSM stood at Rs 99.4 billion and Rs 176.6 billion as on June 30, 2017.
The committee was further informed that the government had also provided guarantees amounting to Rs 161.5 billion to on behalf of PIACL, as on June 30, 2017, whereas total borrowing and accumulated losses of the PIACL amount to Rs 186.5 billion up to December 31, 2016.
The Director-General PC told the committee that 172 transactions were completed pre-2013 and total privatisation raised Rs 648.6 billion.
It was informed that total five transactions were completed during last four years including privatisation of United Bank Limited, Pakistan Petroleum Limited, Allied Bank Limited, Habib Bank Limited and National Power Construction Company.
The transaction completed during last four years raised gross proceeds of Rs 172.87 billion including $ 1.1 billion in foreign exchange component.
The committee was informed that under current privatisation programme, the Cabinet Committee on Privatisation had approved the privatisation of 70 loss-making public sector entities and the total 42 entities included in the early implementation of privatisation.
The Small and Medium Enterprises Bank, Mari Petroleum and PSM was on the ongoing transaction, whereas transaction structure of PSM has been finalised by the PC board and liability settlement plane in consultation with NBP, SSGC, PSM and Ministry of Industries and Production is being finalised.
Speaking on the occasion, Minister for Privatisation Daniyal Aziz said that sick public sector enterprises were consuming over Rs 700 billion annually, adding that these loss-making entities were operated by borrowing due to which private sector was deprived of the credit facility for industrial development and job creation opportunities.
The amount spent on these enterprises could be spent on the social sector development and poverty alleviation for a rapid socio-economic uplift of the country.
Meanwhile, the Chairman of the Committee directed Ministry of Privatisation to submit a report on the discount rate provided during the privatisation of UBL and HBL, besides preparing a proper policy of privatisation in order to improve the working capacities of state own enterprises.
Discussing another agenda item regarding reassessment of 1-2 per cent census blocks, the Secretary Statistic told the committee that reassessment was not possible at yet, however, the representative of the provincial governments was briefed about the scanning of farms, which were appreciated by them.
