Cabinet okays privatisation of Petroleum Division’s two subsidiaries

ISLAMABAD: The federal cabinet has approved privatisation of Petroleum Division’s two subsidiaries, Pakistan Mineral Development Corporation and Saindak Metals Limited, and closure of one entity, ENAR Petrotech Services Limited.

According to official sources, after the approval of the cabinet, the above mentioned two entities would be included in the list for privatisation. However, the federal government is yet to take any decision on the future of other entities of the Petroleum Division, including PSO and Sui Gas companies. Legal consultation is under way in this regard, added the sources.

According to the government sources, Petroleum Division had suggested that the decision regarding privatisation of the entities should be taken by the government. The Petroleum Division neither supported nor opposes privatisation of these entities in its summary but pointed out various complications in the case of privatisation.

According to sources, these are crucial questions as to what would happen to the LNG agreement with Qatar in case of privatisation of PSO and whether it would be possible to privatise PARCO, or Pak Arab Refinery Limited, without taking the UAE into confidence. The government would take a decision in this regard while keeping in view all these aspects.

According to sources, PARCO is a joint venture between Pakistan and the United Arab Emirates. Pakistan has 60pc shareholding in PARCO and the UAE 40pc.