ISLAMABAD: Two banks will not be privatized after being deemed “essential” enterprises by the Cabinet Committee on State-Owned Enterprises (CCoSOEs).
The Finance Minister Muhammad Aurangzeb headed the committee meeting on Monday, which looked at the state of SOEs in preparation for their potential transfer to the private sector.
Along with SECP chairman and SBP governor, other attendees included Ministers of Housing, Maritime Affairs, and Economic Affairs, as well as Minister of Housing Riaz Hussain Pirzada and Ahad Cheema.
It was decided at the meeting that the National Bank of Pakistan (NBP) is not subject to the Sovereign Welfare Fund Act 2003 because it is a part of the NBP.
Foreign investors are reassured by FM Aurangzeb about the government’s commitment to restructure SOEs.
In light of this, the committee decided to remove it from the list of SOEs that are slated for privatization.
The Export-Import Bank of Pakistan, better known as Exim Bank, was also designated by the committee as a crucial SOE for advancing trade.
To determine which SOEs should be privatized, the government established the Cabinet Committee on Privatization (CCoP) and the CCoSOEs committees.
The meeting was briefed by pertinent ministries on the situation of state-owned enterprises (SOEs), including whether or not they ought to remain under government supervision.
The CCoP, under the direction of Deputy Prime Minister Ishaq Dar, examines the SOEs approved for privatization during the second stage.
24 SOEs were approved for privatization by CCoP at its most recent meeting.
According to an official release, the finance division’s summaries were taken into consideration by CCoSOEs when classifying relevant SOEs as strategic, critical, or not.
The National Security Printing Company and Pakistan Security Printing Corporation remerged, and the committee authorized it as well. It also instructed the Ministry of Finance and SBP to finish the necessary procedures and submit the implementation plan to them in two months.
FM gatherings
The finance minister also held separate meetings with representatives from the Public Private Partnership Authority (P3A) and the multinational consulting firm Kearney.
The Kearney delegation gave a summary of its operations and processes as well as information about its continuous involvement in the SIFC program’s reshaping of public bodies.
They gave the minister of finance an update on their involvement with P3A, stating that the list of firms slated for restructuring is nearing completion.
The finance minister outlined the privatization initiatives of his administration and insisted that SOE reforms were a crucial component of this plan.
The discussion reaffirmed Kearney’s and P3A’s dedication to pushing the agenda for greater privatization and public sector transformation.
The minister was told about the Pak-Arab Refinery Company (Parco)’s ongoing developments in Pakistan by a delegation of the company during a separate meeting.
Mehmet Celepoglu, the executive vice president for Oceania and South Asia at Parco, led the trip, which also included Torbjörn Törnqvist, the CEO and co-founder of Gunvor Group, a significant investor in Pakistan’s oil industry.
Representatives from PARCO and Gunvor Group emphasized throughout the conference their commitment to aiding in the growth of Pakistan’s energy industry.
Mr. Aurangzeb outlined the government’s continued efforts to privatize and restructure the energy sector.
He emphasized how important foreign investment was to the government and how it would continue to work with multinational corporations.
He expressed gratitude to the team for their interest in Pakistan’s energy industry and reaffirmed the government’s commitment to establishing profitable alliances with foreign firms.
