ISLAMABAD: The Cabinet Committee on State-Owned Enterprises (CCoSOEs) has declared two banks “essential” entities, thus saving them from being privatised.

The committee’s meeting on Monday, chaired by Finance Minister Muhammad Aurangzeb, examined the status of SOEs for their probable handover to the private sector.

The meeting was also attended by Minister for Housing Riaz Hussain Pirzada, Minister for Maritime Affairs Qaiser Sheikh, Minister for Economic Affairs Ahad Cheema, SBP governor and SECP chairman.

The meeting decided that the National Bank of Pakistan (NBP), being part of the Sovereign Welfare Fund, is exempt from the SOE Act 2003.

FM Aurangzeb assures foreign investors of govt’s commitment towards restructuring of SOEs

Hence, the committee approved its exemption from the list of SOEs in line for privatisation.

The committee also categorised the Export-Import Bank of Pakistan, or Exim Bank, as an essential SOE for promoting trade.

The government has set up two committees—CCoSOEs and Cabinet Committee on Privatisation (CCoP)—to identify SOEs that should be privatised.

Relevant ministries briefed the meeting on the state of SOEs, including whether they should be privatised or kept under government control.

In the second phase, the CCoP, led by Deputy Prime Minister Ishaq Dar, reviews the SOEs authorised for privatisation.

In its last meeting, CCoP okayed the privatisation of 24 SOEs.

An official announcement said that CCoSOEs considered the summaries presented by the finance division for the categorisation of relevant SOEs as strategic, essential or otherwise.

The committee also approved the re-merger of National Security Printing Company with Pakistan Security Printing Corporation and directed the Ministry of Finance and SBP to complete the formalities and present the implementation plan within two months.

FM’s meetings

Separately, the finance minister met with the delegations of the global consulting firm Kearney and the Public Private Partnership Authority (P3A).

The Kearney delegation provided an overview of its workflow and functions, detailing its ongoing engagement in reshaping public entities under the SIFC programme.

They updated the finance minister on the current status of their engagement with P3A, noting that the list of entities for restructuring is being finalised.

The finance minister highlighted his government’s privatisation efforts and said SOE reforms were integral to this strategy.

The meeting underscored Kearney’s and P3A’s commitment to advancing public sector restructuring and the broader privatisation agenda.

In a separate meeting, a Pak-Arab Refinery Company (Parco) delegation briefed the minister about the company’s ongoing projects in Pakistan.

The delegation, led by Parco’s Oceania and South Asia Executive Vice President Mehmet Celepoglu, also included Torbjörn Törnqvist, the co-founder and CEO of Gunvor Group, a key investor in Pakistan’s oil sector.

During the meeting, PARCO and Gunvor Group representatives reaffirmed their dedication to supporting the development of Pakistan’s energy sector.

Mr Aurangzeb highlighted the government’s ongoing energy sector reforms and privatisation efforts.

He emphasised the government’s commitment to collaborating with international companies and placed significant value on foreign investment.

He thanked the delegation for their interest in Pakistan’s energy sector and reiterated the government’s commitment to fostering mutually beneficial partnerships with global investors.

Published in Dawn, August 6th, 2024