Islamabad: The Senate Standing Committee on Privatization convened at Parliament House to scrutinize the privatization processes of the Pakistan Minerals Development Corporation (PMDC) and Pakistan International Airlines (PIA). Led by Senator Afnanullah Khan, the Committee examined the entities’ assets, financial status, and employee welfare facilities.

According to Senate of Pakistan, Engineer Asad Ahmed, Managing Director of PMDC, informed the Committee about the extensive mineral reserves under the organization’s purview. The Committee also received insights into ongoing mineral exploration activities in Balochistan and detailed information on PMDC’s office and land holdings. Concerns were raised over leases of certain lands at rates below market value, prompting recommendations to revisit and adjust rental agreements.

The Committee reviewed financial details of coal mining in Balochistan, noting the disparity between production costs and income from extracted coal. The need for improved operational performance was emphasized, as PMDC’s annual income was deemed low relative to its potential.

Usman Bajwa, Secretary of the Privatization Commission of Pakistan, briefed the Committee on the progress of PIA’s privatization. He mentioned that a consortium, led by Arif Habib, is working on identifying new management for PIA, with financial closure expected by April. The consortium has formed PIA Equity Limited to manage shareholder interests, and no major obstacles remain in the privatization process.

Committee members were briefed on PIA Holding Company Limited’s assets and liabilities. The airline reported significant profits for 2024, while medical facilities for retired employees were also discussed. Proposals for medical insurance by the State Life Insurance Corporation were approved, aiming to enhance healthcare provisions for pensioners.

The Committee addressed various topics, including PIA’s properties, privatization aspects, and tax concessions on new aircraft. The strategic importance of Gwadar International Airport was highlighted, with potential to serve as a regional aviation hub due to its geographic location.

The meeting saw participation from several senators, former National Assembly member Chaudhry Manzoor Ahmad, and senior officials from the Privatization Commission and relevant departments.