Latest news with #MuhammadFarooqSattar
Business Recorder
15-07-2025
- Business
- Business Recorder
Due diligence in process: Govt intends to dispose of PIACL assets
ISLAMABAD: The federal government has intended to dispose of operational assets of Pakistan International Airlines Company Limited (PIACL) in the last quarter of the current year after completion of 60 to 90 days due diligence process, a parliamentary panel has been apprised on Monday. Muhammad Farooq Sattar chaired the meeting of National Assembly's Standing Committee on Privatisation on Monday to get briefing on privatisation of PIA and First Women Bank Limited (FWBL). Four pre-qualified parties for PIA privatisation will now proceed to the buy-side due diligence phase from Tuesday (today) and process will be completed in 60 to 90 days period depending on the potential buyers, Privatisation Commission Secretary Usman Akhtar Bajwa informed the committee members. PIA privatisation: EoIs due today for up to 100% stake Four interested parties have been prequalified: Consortium comprising Lucky Cement Limited, Hub Power Holdings Limited, Kohat Cement Company Limited, and Metro Ventures (Private) Limited. Consortium comprising Arif Habib Corporation Limited, Fatima Fertilizer Company Limited, City Schools (Private) Limited, and Lake City Holdings (Private) Limited. Fauji Fertilizer Company Limited and Air Blue (Private) Limited. The prequalified parties will now proceed to the buy-side due diligence phase - a critical next step in the transparent and competitive privatisation process of PIACL. The chairman committee, however, recommended the government to assure the retention period for 6,700 PIA employees from three to four years after privatisation of the airlines. Earlier, secretary Privatisation Commission said that 20 to 25 percent surplus staff was present in the PIA, however, the potential buyers would need additional staff with the expansion of flying operation. He said that the commission would ensure retention of employees through negotiation with the potential buyers which was 18 months in the last round of PIA bidding. He said that out of four, three interested parties participated in previous round of bidding. Fly Jinnah did not participate in the bidding because Air Arabia was of the view that they had the experience to run only low cost airlines and not international airline like PIA. Responding to base price of the PIA operational assets, secretary said that it would be decided near bidding date. Depending on the interest and financial advisers transactional structure, he added. Secretary Commission further revealed expression of interest (EOI) for privatisation of Roosevelt Hotel in New York City would be invited in August 2025. Air Vice Marshal (retired) Muhammad Amir Hayat informed the committee that PIA has joint operation with Turkish Airline and Ethiopian Airlines. He disclosed that the financial health of PIA would further improve after restoration of its flight to Manchester (UK). Copyright Business Recorder, 2025
Business Recorder
31-05-2025
- Business
- Business Recorder
Panel suggests review of USC sell-off decision
ISLAMABAD: The 9th meeting of the Standing Committee on Privatisation held Friday under the chairmanship of Muhammad Farooq Sattar, here at Parliament House. After confirmation of the minutes of previous meeting, secretary Privatisation Division briefed the committee on the implementation status on the recommendations of the previous meeting and stated that the committee had recommended that the decision to privatise Utility Stores Corporation (USC) should be reviewed. He stated that the Cabinet Committee on Privatisation/Cabinet is the competent forum for inclusion of SOEs in the privatisation programme and the recommendations of the Standing Committee will be brought before CCOP/Cabinet. Hesco, Pesco and Fesco: PD tasked with completing sell-off homework by Q2 The representatives of Peshawar Electric Supply Company (PESCO) and Hyderabad Electric Supply Company (HESCO) briefed the committee on the progress of privatisation process of the DISCOs. The committee showed its serious concern over unannounced and heavy load shedding and directed to ensure to minimise the load shedding duration. The committee also expressed its displeasure on non-cooperation and not attending the phone calls of the public representatives and directed to ensure and prioritise the parliamentarian's telephone calls and to resolve their matters. The representative of the Ministry of Finance briefed the committee on the status of Rs48 billion promissory notes and the interest acquired thereon. He informed the committee that in 2021-22 Rs14 billion provided to Postal Life Insurance Company Limited (PLICL) and government of Pakistan stand committed to pay the remaining amount. On the other hand, the representative of the PLICL informed the committee that Ministry of Finance is not paying sufficient amount to meet the clients claims that is why the number of clients have been dropped up to 50 per cent. After thorough deliberation on the subject, the committee observed that the PLICL stance is justified and recommended that an amount of Rs8 billion must be provided to PLICL latest by September 2025. The committee also recommended that PLICL must ensure to protect the policy holders rights. The committee deferred, 'The Privatisation Commission (AMENDMENT) Bill, 2024' (government bill) till its next meeting. Copyright Business Recorder, 2025
Business Recorder
23-04-2025
- Business
- Business Recorder
Hesco, Pesco and Fesco: PD tasked with completing sell-off homework by Q2
ISLAMABAD: The Power Division was tasked to complete its homework for the privatisation of three DISCOs (Hesco, Pesco and Fesco) by second quarter of fiscal year 2025-26, a parliamentary panel has been informed on Wednesday. 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
