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ISLAMABAD: The National Assembly Standing Committee on Privatization reviewed the expenditures incurred in the privatization of Pakistan International Airlines Corporation Limited (PIACL) during its 7th meeting, chaired by Muhammad Farooq Sattar.
The committee was briefed by the Secretary Privatization Commission, who informed members that $4.3 million out of the total $6.8 million had been paid to financial advisor Ernst & Young, amounting to 63% of the total fee. The remaining amount will be disbursed after a second attempt. Additionally, updated property valuations of assets retained by PIACL have been reflected in the financial statements for the period ending April 30, 2024.
The committee also discussed the Privatization Commission (Amendment) Bill 2024 (Government Bill). An objection was raised regarding Clause 4, Section 7 (4), with members questioning whether there was any precedent for granting the Prime Minister direct authority over the privatization process instead of the Cabinet. The committee directed the Ministry of Law to submit a written clarification in the next meeting and deferred further discussion on the bill until then.
Another key agenda item was the privatization of Pakistan Engineering Company (PECO), Lahore, which was included in the privatization list in August 2024. The Secretary Privatization Commission informed the committee that PECO currently has no active production line and only 32 employees. It was noted that NIT owns 23% of PECO shares, which were acquired from the open market. However, the Ministry of Industries raised concerns over the transparency of these share transactions on the stock exchange.
Representatives from the private sector highlighted that PECO was once a key industrial entity, attracting interest from Chinese and Japanese investors. They also noted that in the 1960s, PECO was involved in manufacturing aircraft parts. Under private management, the company’s financial losses had reportedly decreased from Rs2 billion to Rs7 billion.
Following the discussion, the committee directed the Secretary Privatization, Secretary Industries, and Secretary Law to submit a detailed report on PECO’s privatization within 40 days. The committee also recommended that the Ministry of Industries ensure PECO employees receive their salaries before Eid.
The meeting was attended by MNAs Anwar Ul Haq Chaudhary, Abdul Qadir Khan, Asiya Naz Tanoli, Nazir Ahmed Bhugio, Mubarak Zeb, Sehar Kamran, and Mehboob Shah, along with officials from the Privatization Commission, Ministry of Law, and Ministry of Industries.
