Key Decisions on Privatisation Initiatives
The Privatisation Commission (PC) has made several important decisions regarding the ongoing privatisation efforts of key state-owned enterprises in Pakistan. These include the House Building Finance Company Limited (HBFCL), Pakistan International Airlines Corporation Limited (PIACL), and the management of three international airports located in Islamabad, Lahore, and Karachi.
The decisions were made during the PC’s 242nd meeting, which was chaired by Adviser to the Prime Minister on Privatisation, Muhammad Ali. The board focused on various aspects of the privatisation process, including the sale of HBFCL and the inclusion of new entities in existing consortiums.
Sale of HBFCL Through Negotiated Process
One of the major outcomes of the meeting was the recommendation of a reference price for the privatisation of HBFCL. Alongside this, the terms of the Sale Purchase Agreement were also approved for submission to the Cabinet Committee on Privatisation (CCoP). The company is being privatised through a negotiated sale to the Pakistan Mortgage Refinance Company Limited (PMRCL), which has already been pre-qualified as a bidder.
The CCoP and the federal cabinet had previously approved proceeding with a negotiated sale to a single pre-qualified bidder in July 2023. PMRCL has submitted its bid, which will be opened after the approval of the reference price by the CCoP and its ratification by the cabinet. This step marks a crucial phase in the privatisation process of HBFCL.
Inclusion of AKD Group in PIACL Consortium
The board also approved the inclusion of AKD Group Holdings (Pvt) Ltd in the consortium led by Arif Habib Corporation Limited (AHCL), upon the consortium’s request. This inclusion is permissible under the conditions stipulated in the Statement of Qualifications (SOQ). The AHCL consortium is among the four pre-qualified parties participating in the privatisation process of PIACL.
This move highlights the flexibility and adaptability of the privatisation process, allowing for the inclusion of additional players that meet the necessary criteria. It also reflects the board’s commitment to ensuring a competitive and transparent process.
Expansion of Privatisation to Airport Management
In addition to the privatisation of HBFCL and PIACL, the board recommended the inclusion of the management of three international airports—Islamabad, Lahore, and Karachi—in the ongoing privatisation programme. Under this initiative, airport management will be offered on a long-term concession basis.
This expansion of the privatisation agenda is aimed at improving operational efficiency and financial sustainability of the airports. It also aligns with the government’s broader reform objectives, which seek to enhance the performance of public sector enterprises through private sector participation.
Commitment to Efficient and Transparent Implementation
The board reaffirmed its strong commitment to implementing the government’s privatisation agenda with efficiency, transparency, and strategic focus. Members expressed a collective resolve to overcome past challenges and to ensure the timely and successful completion of ongoing transactions.
This commitment is essential for building trust among stakeholders and ensuring that the privatisation process delivers tangible benefits to the economy and the public. The board’s focus on transparency and accountability is expected to contribute to the success of these initiatives.
Conclusion
The recent decisions by the Privatisation Commission mark significant progress in the ongoing privatisation of key state-owned enterprises in Pakistan. From the sale of HBFCL to the inclusion of new entities in the PIACL consortium and the expansion of privatisation to airport management, the board has taken a comprehensive approach to achieving the government’s reform objectives.
As the process moves forward, it will be critical to maintain the momentum and ensure that all steps are executed efficiently and transparently. The successful implementation of these privatisation initiatives could have far-reaching implications for the country’s economic landscape.