ISLAMABAD: The Ministry of Industries and Production has identified 16 out of its 29 affiliated institutions for potential closure or privatisation as part of a sweeping rightsizing and privatisation strategy. The remaining institutions are being evaluated for public-private partnership models.
The government is considering the closure or privatisation of 16 entities including key players like National Fertilizer Company (NFC), Pakistan Automobile Corporation (PACO), and National Productivity Organisation (NPO), as part of a broader effort to streamline operations and improve efficiency.
Minister Rana Tanveer Hussain stated that underperforming institutions will face closure within six months, while others may be restructured under public-private partnerships. The government is focused on improving the industrial sector, with vital entities like the Small and Medium Enterprises Development Authority (Smeda) remaining under state control.
The minister said this while briefing the Senate Standing Committee on Industries and Production, chaired by Senator Aon Abbas Bappi, outlining the government’s plan to improve operational efficiency by phasing out underperforming entities.
He emphasised that institutions failing to meet performance targets within the next six months would face closure. “Institutions showing subpar performance will be shut down,” Hussain said, underscoring the government’s commitment to streamlining operations and bolstering industrial efficiency.
Additional Secretary Asif Saeed Khan stated that six to seven institutions are crucial to the nation’s industrial ecosystem and also highlighted plans to close or privatise the 16 institutions, including Section 42 companies. While the cabinet had initially approved their closure, this decision is under reconsideration following a request for withdrawal. The committee is focused on ensuring that any rightsizing efforts align with national economic and industrial priorities.
The committee discussed the asset portfolios of key institutions, including Pakistan Engineering Company, which faces a debt burden of Rs7 to 8 billion despite owning assets worth Rs19 billion. Republic Motors, with assets valued at Rs10 billion, is also struggling with asset occupation by 28 individuals and plans to enlist a legal team for asset recovery. Utility Stores Corporation, a key player in retail distribution, was also discussed. Despite initial plans to close the stores, the government has since decided to include them in the privatisation list. Of the corporation’s 4,300 stores, 2,400 are operating at a loss, primarily in Balochistan and Gilgit-Baltistan, while 1,900 are profitable.
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