Government Executes Rs105 Billion Deal to Swap Ownership in PSPC for Full Control of ZTBL

ISLAMABAD: The Pakistani government has approved a significant Rs105 billion transaction aimed at fulfilling its commitment to the International Monetary Fund (IMF). In this deal, the government will swap its ownership in the Pakistan Security Printing Company (PSPC) with the State Bank of Pakistan (SBP) to gain full control over the Zarai Taraqiati Bank Ltd (ZTBL).

The Cabinet Committee on State-Owned Entities (CCoSOE), chaired by Finance Minister Muhammad Aurangzeb, made the decision during a meeting, according to reports. The move is part of the government’s broader initiative to streamline state-owned entities (SOEs) and resolve conflicts of interest, in line with the IMF’s requirement for the SBP to divest from all banks and financial institutions by June 30, 2025.

As part of the transaction, SBP will acquire NSPC’s ownership, which had previously been managed under the Ministry of Finance, merging it with PSPC, which SBP already owns. For this, SBP will pay Rs41.77 billion to the Ministry of Finance.

Government Gains Full Control of ZTBL

In return, the government will gain full control of ZTBL, acquiring SBP’s entire shareholding in the bank for Rs62.9 billion. The remaining difference of Rs21.16 billion between the transactions will be settled using the government’s share in SBP’s retained profits.

Moreover, the Finance Division will purchase SBP’s equity and preference shares in ZTBL, with the total purchase price set at Rs62.9 billion. The remaining proceeds from the NSPC transaction will be adjusted against SBP’s surplus profits.

Additionally, during the meeting, the CCoSOE approved the restructuring of boards for several power generation companies to align with the amended SOEs Act. The Prime Minister also confirmed the decision to retain Pakistan Railways as a “strategic and essential” asset under government control.