The Privatisation Commission has disbursed $4.3 million to Ernst & Young, its financial advisor, for expenses related to the privatisation of Pakistan International Airlines Corporation Limited (PIACL) in the 2023-24 fiscal year. The remaining $2.5 million will be paid in the future.
This update came during a meeting of the Standing Committee on Privatisation, chaired by MNA Muhammad Farooq Sattar. The committee was briefed by the Privatisation Commission Secretary on the financial costs involved in PIACL’s sell-off process.
Additionally, the committee reviewed the Privatisation Commission (Amendment) Bill, 2024, and raised concerns over Clause 4, Section 7(4). This clause suggests granting the prime minister exclusive decision-making authority in the privatisation process, instead of involving the federal cabinet. The Ministry of Law was instructed to provide a written clarification in the next meeting.
The Secretary also informed the committee about the updated asset valuations for PIACL’s retained properties, which will be included in the financial statements for April 2024. The committee requested a detailed breakdown of the properties that have been transferred to holding companies.
Further discussions focused on the privatisation of Pakistan Engineering Company (PECO), which was added to the privatisation list in August 2024. The committee learned that PECO, currently employing just 32 staff members, has no active production line. Despite concerns over unclear stock exchange share transactions, private sector representatives highlighted that under private management, PECO’s losses have decreased from Rs2 billion to Rs700 million.
The committee instructed the Privatisation Commission Secretary to consult with the Secretaries of Industries and Law and submit a comprehensive report on PECO’s status within 40 days. Additionally, the Ministry of Industries was directed to ensure PECO employees receive their salaries before Eid.
The meeting was attended by MNAs Anwar ul Haq Chaudhry, Abdul Qadir Khan, Asiya Naz Tanoli, Nazir Ahmed Bhugio, Mubarak Zeb, Sehar Kamran, and Mehboob Shah, as well as senior officials from the ministry.
