Privatisation generated Rs139bn over last decade: ministry

ISLAMABAD: The privatisation ministry informed the National Assembly during the Question -Hour on Thursday that privatisation proceeds amounting to Rs139 billion were received by the federal government over the last decade, spanning from the fiscal year 2014-15 to 2023-24.

Providing a detailed breakdown of the proceeds and their utilisation, the ministry stated in a written reply that in 2014-15: The privatisation of 131 million shares of Allied Bank Limited (ABL) generated proceeds of Rs14.44 billion, out of which Rs14.381 billion were transferred to the Finance Division/State Bank of Pakistan (SBP) after deducting taxes and Privatisation Commission (PC) charges. Additionally, 609 million shares of Habib Bank Limited (HBL) were privatised, yielding Rs102.63 billion. Of this, Rs2.283 billion were transferred to the Finance Division and Rs98.879 billion to the SBP, totalling Rs101.161 billion after deductions. The privatisation of 70 million shares of Pakistan Petroleum Limited (PPL) generated Rs15.443 billion, with Rs15.223 billion transferred to the Finance Division after deductions.

2015-16: The privatisation of National Power Construction Corporation (NPCC) and 18 million shares generated Rs2.517 billion. Of this, Rs2 billion were transferred to the Finance Division after deducting taxes and PC charges.

2016-17 to 2019-20: No privatisation activities took place during these fiscal years.

2020-21: Proceeds of Rs980 million were obtained through the privatisation of 10 properties. These funds will be transferred to the Finance Division upon financial closure after deductions.

2021-22: The privatisation of Services International Hotel, Lahore, yielded Rs1.952 billion. From this, Rs1.9 billion was transferred as follows: Rs635 million to the Lahore Development Authority (LDA), Rs317 million to the Punjab Cooperative Board for Liquidation (PCBL), and Rs952 million to the National Insurance Corporation Limited (NICL).

2022-23: No privatisation proceeds were reported during this fiscal year.

2023-24: The privatisation of Heavy Electrical Complex generated Rs1.410 billion, with Rs1.349 billion transferred to the Finance Division after deductions.

The ministry highlighted that all proceeds were transferred after deducting applicable taxes and PC charges and that the funds were allocated to respective entities or divisions as per regulatory requirements.