Hesco, Pesco and Fesco: PD tasked with completing sell-off homework by Q2
The 8th meeting of the Standing Committee on Privatisation was held under the Chairmanship Muhammad Farooq Sattar here in the Ministry of Privatization.
The chairman Privatization Commission informed the committee that for privatisation of Hesco, Pesco and Fesco, terms and conditions for privatisation are under consideration and financial adviser for due diligence will be hired, audit and accounts will be maintained and Power Division has given time till September/October 2025.
KE asks Power Div for consultation on NEP
He also informed the committee that privatisation process will be started by end of May.
The committee expressed serious reservations on appointing board of governors of power companies and recommended that competency must be observed while appointing boards.
The committee also directed that CEO's must attend the next meeting in person. The representative of Postal Life Insurance Company Limited (PLICL) informed the committee that the company have about 0.3 million customers and they have demanded rupees eight billion from the Ministry of Finance this year. The committee directed that last 4-5 years figures must be provided and the policy holders must be protected. Ministry of Finance should clarify the status of funds of PLICL.
The representative of Utility Stores Corporation (USC) briefed the committee on the implementation status of the recommendations of the previous meeting. He briefed the committee about details of subsidies provided, profit earned and tax paid. He also briefed the committee about the (USC) network and number of employees. He informed the committee that under the restructuring plan of USC, 1203 Utility Stores have been closed and 2,237 employees have been laid off till date. He informed that only 1,500 stores will be functional on commercial basis. The committee inquired that if Utility Stores Corporation is shifted on commercial basis and earns profit then what is the justification to prioritise it. The representative of Ministry of Privatisation replied to the committee that a presentation on it will be given to the committee in the next meeting. He stated that it depends on policy decision by the government and profitable entities may also be privatised. The committee recommended that the decision of USC privatisation must be reviewed in the larger interest of the country and a large number of employees and their families.
The committee also considered, 'The Privatization Commission (Amendment) Bill, 2024' (government bill). The representatives of the Ministry of Law briefed the committee on the bill but the committee directed him to present any precedent, the representatives from the Ministry of Law assured the committee that the precedent will be provided in the next meeting of the committee so the committee pended the bill till its next meeting.
While discussion on privatisation of Pakistan Engineering Company (PECO) requested the committee to provide more time to resolve the issue. The committee gave the time of three months and directed to resolve the issue within due time and recommended that chairman and MD must be appointed from majority of shareholding instead of government nominees. The committee also considered the report of Sub-Committee appointed under convenorship of Sehar Kamran, MNA on decline of PIACL. Sehar Kamran briefed the committee on the report of the Sub-Committee. The Committee pended discussion on the report till its next meeting.
Copyright Business Recorder, 2025
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