Islamabad: The Standing Committee of the National Assembly on Privatization convened at Parliament House to assess the ongoing privatization efforts concerning Distribution Companies (DISCOs) and Pakistan International Airlines Corporation Limited (PIACL), and to address the issue of delayed Postal Life Insurance claims. The meeting, chaired by Mr. Muhammad Farooq Sattar, MNA, focused on the progress and challenges faced in these privatization endeavors.
According to the National Assembly of Pakistan, the Committee was briefed on the status of DISCO privatization by M/s Alvarez & Marsal, the Financial Adviser to the Privatization Commission. The firm has completed due diligence, leading to the approval of a Restructuring Plan and Transaction Structure by the Privatization Commission Board and CCoP. The plan proposes divesting 51% to 100% shareholding, along with management control, of each DISCO. The EOI process has concluded, with several parties pre-qualified for FESCO, and evaluations underway for GEPCO. The Committee emphasized the need for a transparent and competitive process, ensuring effective post-privatization regulation and oversight by NEPRA.
The Committee also reviewed the PIACL privatization, noting that the Arif Habib-led Consortium submitted the highest bid of Rs.135 billion for a 75% equity stake, surpassing the reference price. Transaction documents were executed, and First Completion achieved, resulting in transfer of management control. The Consortium expressed intent to exercise the Call Option for the remaining 25% stake, contingent upon contractual requirements and Second Completion. The Committee stressed the importance of maintaining regulatory oversight, service quality, and adherence to aviation laws.
Addressing the Postal Life Insurance Corporation Limited (PLICL) claims, the Committee was informed of outstanding liabilities amounting to Rs.15.500 billion as of June 2026, affecting about 55,450 claims. With an additional funding requirement of Rs.8.455 billion, only Rs.3.00 billion has been released, leaving a significant backlog. The Committee urged authorities to explore additional funding through a Supplementary Grant in December 2026 to address the claims backlog, particularly for vulnerable policyholders.
The meeting saw participation from several Honourable Members, including Mr. Abdul Qadir Khan and Ms. Saba Sadiq, alongside senior officials from the Ministry of Privatization, Ministry of Finance, and PLICL.