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ISLAMABAD, Apr 23 (APP):The Nation Assembly Standing Committee on Privatization met on Wednesday under the Chairmanship of Muhammad Farooq Sattar and discussed matters relating to privatization.
The representative of Utility Stores Corporation (USC) briefed the Committee on the implementation status of the recommendations of the previous meeting.
He briefed the Committee about details of subsidies provided, profit earned and tax paid. He also briefed the Committee about the (USC) network and number of employees.
He informed the Committee that under the restructuring plan of USC, 1203 Utility Stores have been closed and 2237 employees have been laid off till date.
He further informed that only 1500 stores will be functional on commercial basis.
The Committee inquired that if Utility Stores Corporation is shifted on commercial basis and earns profit then what is justification to prioritize it.
The representative of Ministry of Privatization replied the Committee that a presentation will be given to the Committee in the next meeting.
He further stated that it depends on policy decision by the government and profitable entities may also be privatized.
The Committee recommended that the decision of USC privatization must be reviewed in the large interest of the country and a large number of employees and their families.
The Committee also considered “The Privatization Commission (Amendment) Bill, 2024” (Government Bill).
The representatives of Ministry of Law briefed the Committee on the bill but the Committee directed him to present any precedent, the representatives from the Ministry of Law assured the Committee that the precedent will be provided in the next meeting of the Committee so the Committee pended the bill till its next meeting.
Chairman Privatization Commission informed the Committee that for privatization of HESCO, PESCO and FESCO, terms and conditions for privatization are under consideration and financial advisor for due diligence will be hired, audit and accounts will be maintained and power division has given time till September/October 2025.
He also informed the Committee that privatization process will be started by end of May.
The Committee expressed serious reservations on appointing board of governors of power companies and recommended that competency must be observed while appointing boards.
The Committee also directed that CEO’s must attend the next meeting in person.
The representative of Postal Life Insurance Company Limited informed the Committee that the company have about 300,000 customers and they have demanded rupees 8 billion from the Ministry of finance this year.
The Committee directed that last 4-5 years figures must be provided and the policy holders must be protected.
Ministry of Finance should clarify the status of funds of PLICL.
While discussion on privatization of Pakistan Engineering Company (PECO) requested the Committee to provide more time to resolve the issue.
The Committee gave the time of 3 months and directed to resolve the issue within due time and recommended that Chairman and MD must be appointed from majority of shareholding instead of Government nominees.
The Committee also considered the report of Sub-Committee appointed under convenorship of Ms. Sehar Kamran, MNA on decline of PIACL.
Ms. Sehar Kamran briefed the Committee on the report of the Sub-Committee. The Committee pended discussion on the report till its next meeting.
The following MNAs namely Chaudhry Mehmood Bashir Virk, Anwar Ul Haq Chaudhary, Ms. Saba Sadiq, Nazir Ahmed Bhugio, Sanjay Perwani, Ms. Sehar Kamran, Nauman Islam Shaikh, Mubarak Zaib, Mr. Zulfiqar Ali, Arshad Abdullah Vohra besides the officials of the Ministry attended the meeting.