Federal Government Submits 21 Institutions for Privatisation to SIFC

The federal government has submitted 21 institutions for privatisation, along with a comprehensive list of eight inactive institutions, to the Special Investment Facilitation Council (SIFC). The privatisation of these 29 institutions will be discussed at the SIFC meeting next week, including deliberations on their inactivity.

Six new institutions have been added to the privatisation list, while recommendations have been made to completely shut down eight inactive institutions. Fifteen institutions were already included in the privatisation list.

Government officials reported that the total loss incurred by the eight inactive federal agencies exceeds Rs30 billion. These institutions had a cumulative financial size of over Rs100 billion in the past decade.

The privatisation list includes Postal Life Insurance Company Limited, GENCO-I, Agricultural Development Bank Limited, GENCO-IV, Utility Stores Corporation, Lakhra, and Jamshoro power plants. Morafco Industries Limited (MOIL), PACO, and Pakistan Motors Company Limited are also among the completely inactive institutions.

Pakistan Automobile Corporation, Republic Motors Limited, and Sindh Engineering Limited are classified as inactive institutions. Pakistan Gems and Jewellery Development is also in this category, having suffered nearly two billion in losses in the past fiscal year. Pakistan’s hunting and sports arms development company is also included among the inactive institutions.

These completely inactive institutions have been closed for many years and are included in the scrutiny list. The Ministry of Industry and Production has attributed financial losses and instability to the federal government’s decision to abolish the union cabinet division through a notification in December 2019.

Republic Motors Limited and Sindh Engineering Limited have been on the privatisation list since 1992.