**Senate Committee Scrutinizes Privatization Efforts Amid Concerns Over Transparency and Rationale**
ISLAMABAD – The Senate Standing Committee on Privatization has raised serious concerns about the government’s ongoing privatization program, particularly regarding the inclusion of major public sector entities such as Pakistan Minerals Development Corporation (PMDC) and Zarai Taraqiati Bank Limited (ZTBL). The committee has questioned decision-making processes, delays, and the overall transparency of the strategy, calling for detailed explanations and further deliberations.
Chaired by Senator Dr. Afnan Ullah Khan and attended by senators, ministry officials, and representatives from the Power Division and ZTBL, the committee examined multiple contentious points within the government’s privatization agenda. The session began with a review of pension liabilities at Pakistan International Airlines Corporation Limited (PIACL), revealing that Rs. 14.87 billion is owed to 6,625 retired employees—a figure the chairman described as alarmingly low, prompting questions about the sufficiency of pension provisions. Officials from the Ministry of Privatization responded that pension policies are revised annually, but the committee requested detailed, grade-wise data on pension disbursements for future review.
The potential privatization of PMDC ignited debate among the senators. Senator Zeeshan Khanzada questioned the rationale for privatizing the organization, while Senator Bilal Ahmed Khan pressed for clarification on land allotment policies and mineral output given the government’s intentions. The committee highlighted that the Petroleum Ministry lacks a formal mandate to oversee PMDC’s privatization, noting that such decisions are managed by the Cabinet Committee on State-Owned Enterprises (SOEs). The privatization process, as outlined to the committee, involves board recommendations, Cabinet approval, and the hiring of financial and legal advisors, culminating in a technical evaluation. The chairman recommended inviting PMDC officials to the next meeting for further scrutiny.
ZTBL’s privatisation, included in Phase One of the government’s plan to divest from 24 state-owned entities, also faced committee questions. While the process of hiring a financial advisor is underway, Chairman Dr. Afnan Ullah Khan criticized the six-month delay in finalizing the appointment, attributing holdups to disagreements over advisor fees that forced the process to restart. The ministry committed to completing the ZTBL privatization within the next nine months.
Broader questions were raised by Senator Zeeshan Khanzada regarding the justification and strategy behind privatizing major public entities. He urged the committee to thoroughly investigate the performance and accountability of the Privatization Commission to ensure that public interest is safeguarded.
The session also discussed the phased privatization of major power distribution companies (DISCOs), including Islamabad Electric Supply Company (IESCO), Gujranwala Electric Power Company (GEPCO), and Faisalabad Electric Supply Company (FESCO) in Phase One. Stakeholders, including the Power Division, NEPRA, CPPA, and others, are currently reviewing the due diligence report from the financial advisor. Phase Two will target Hyderabad Electric Supply Company (HESCO) and Sukkur Electric Power Company (SEPCO), with calls for advisors already underway.
The Senate Standing Committee reaffirmed its role in overseeing the privatization process and ensuring transparency, calling for continued dialogue and further details in upcoming sessions to address lawmakers’ concerns and public interest.
