Islamabad: The Senate Functional Committee on Devolution, chaired by Senator Dr. Zarqa Suharwardy Taimur, convened a meeting at Parliament House today to scrutinize the ongoing privatization efforts and the operational status of various state-owned enterprises.
According to Senate of Pakistan, the committee focused on entities listed for privatization by the Privatisation Commission. Currently, there are 27 entities on this list, including major organizations like PIA (Pakistan International Airlines), State Life Insurance, and several Distribution Companies (DISCOs) such as LESCO, MEPCO, IESCO, and FESCO. The discussion highlighted the performance of these entities, particularly the recovery rates reported by DISCOs, with IESCO achieving a 99% recovery rate, while LESCO and FESCO reported 98% and MEPCO 97%.
The committee also expressed concerns over the rationale behind privatizing high-performing entities. Questions were raised about the future of employees and the impact of privatization on service delivery. The Privatisation Commission, which operates with a total of 64 personnel, was asked to furnish detailed reports on the operational and financial status of 82 State-Owned Enterprises (SOEs) to further assess the privatization impact.
Further deliberations covered the specifics of PIA’s privatization process. Officials revealed that during the initial bidding, six entities, including Airblue, Arif Habib Company, and Air Sial, showed interest. The privatization plan for PIA is structured in two phases; initially the airline itself and subsequently its assets, including the significant Roosevelt Hotel. Concerns were voiced by Senator Taimur regarding the government bearing substantial liabilities amounting to Rs. 850 billion as part of the privatization deal.
Moreover, the Ministry of Maritime Affairs presented a briefing on its financial health and operational progress. The Ministry oversees several autonomous organizations like Karachi Port Trust and Port Qasim Authority, with the exception of Gwadar Port Authority, which is managed by a Chinese company. Despite a non-development budget of Rs. 2 billion and a development budget of Rs. 5300 million for 2024-25, the ministry has generated Rs. 80 billion in revenue this fiscal year. Port Qasim stood out as the most profitable with Rs. 34 billion in earnings. The Ministry’s strategy aims to boost these figures by reducing expenses and enhancing operational efficiencies.
The meeting was attended by various stakeholders including Senator Zamir Hussain Ghumro, Senator Poonjo Bheel, and Secretary for the Ministry of Maritime Affairs Syed Zafar Ali Shah, among other senior officials.