Federal Minister for Finance and Revenue Mr. Miftah Ismail chaired the inaugural meeting of Cabinet Committee on Privatisation (CCoP)
Federal Minister for Finance and Revenue Mr. Miftah Ismail chaired the inaugural meeting of Cabinet Committee on Privatisation (CCoP) today. The meeting was attended by Federal Minister for Privatization Mr. Abid Hussain Bhayo, Minister for Defence Khawaja Muhammad Asif, Minister of Interior Rana Sanaullah Khan, Mr. Shahid Khaqan Abbasi, Minister for Industries and Production Syed Murtaza Mahmud, Advisor to the PM on Establishment Mr. Ahad Cheema, Chairman Privatisation Commission Saleem Ahmad, Federal Secretaries, and senior officials of relevant ministries. Chairman Privatisation Commission (PC) presented the roadmap for current privatisation programme for reaffirmation by newly constituted CCoP. He presented government’s plans for revival of Pakistan Steel Mills (PSMC). The plan focuses on revival through significant foreign direct investment and technology transfer generating significant employment opportunities for qualified workers. The committee was apprised of a recent successful due diligence visit by a team of BaoSteel, world’s largest steel producer. BaoSteel manufacturers 180 million tons of steel per annum and is one of four interested parties and plans to increase capacity of PSMC to 3 mtpa. CCoP unanimously welcomed the prospect of PSMC revival, entailing commercial leasing of 1229 acres of land and jetty, and directed ministries of Industries & Production, Energy and Maritime to work with PC to remove all bottlenecks expeditiously. CCoP was apprised of the ongoing effort to recapitalize NPPMCL, the owner of two RLNG power plants in Balloki and Haveli Bahadur Shah. Earlier, PC arranged bids of Rs. 102 billion from a local syndicate of banks for NPPMCL which will release GOP funding and is currently working actively with relevant ministries to fulfil conditions precedent necessary for financial close. CCoP decided to form a sub-committee comprising of Minister of Power, Chairman PC, Secretaries of Power, Petroleum and Privatisation, Additional Secretary Finance Division and CEO NPPMCL for immediate resolution of bottlenecks. Furthermore, Chairman PC tabled a summary on private sector participation in management of DISCOs. CCoP agreed that this is a critical area of focus and directed PC to take one DISCO at a time to pursue a concessional arrangement focused on enhancing their financial viability and service quality. Additionally, transfer of DISCOs to provinces was also deliberated. Minister of Finance apprised the Cabinet Committee on Privatisation (CCoP) of foreign government interest in investing in Pakistan. CCoP deliberated the modalities for negotiated Government to Government (G2G) commercial transactions and decided that it is not the domain of Privatisation Commission. CCoP directed Ministry of Finance to formulate the proposal for structured transactions in coordination with relevant ministries for consideration of the Cabinet. CCoP decided to reconvene and conduct further review of the privatisation programme which is a high priority under current economic situation.