PIA privatization approved: 26pc shares up for grabs
Privatization commission board approves privatization of three national institutions.
ISLAMABAD: (Dunya News) – Zubair Umer, chairman Privatization Commission Board chaired the first meeting here on Wednesday and approved the proposed strategies and roadmaps to privatize at least three national institutions, one of which is national airline Pakistan International Airline. Other two are National Power Construction and Heavy Electric Complex.
According to the approved strategy, 26% of the shares of national airline will be sold and the privatization will be akin to that of PTCL where liabilities will not be transferred to the buyer. National airlines’ losses have crossed rupees 180 billion as of last week as per reports.
Session of Privatization Commission Board will resume on Thursday where OGDCL and PPL are expected to be approved for privatization.
Statement from the privatization commission board says that the board will take every step to ensure protection of rights of the employees during the process.
According to British media, government is expected to gain at least 20 billion rupees by selling 5% shares of Pakistan Petroleum Limited, 70 to 80 billion rupees by selling 10% shares of Oil and Gas Development Company, 15 billion rupees by selling 10% shares of United Bank Limited, 40 to 50 billion rupees by selling 20% shares of Habib Bank Limited and another 10 billion rupees by selling 10% shares of Allied Bank Limited.
The discussion about pros and cons of selling shares of Pakistan Steel Mills, Heavy Electrical Complex, Faisalabad and Islamabad electric supplying companies and thermal power station Muzaffargarh also came under advisement during the session.
As per the loan agreement with International Monetary Fund (IMF), government is supposed to privatize 32 entities within next three years.
Government had appointed Muhammad Zubair of its economic think tank as the chief of Privatization Commission.
Interestingly, Muhammad Zubair is brother of Pakistan Tehrik e Insaf leader Asad Umer.
