ISLAMABAD: The Privatisation Commission (PC) Board on Wednesday approved some major steps to advance the outsourcing of Allama Iqbal International Airport, Lahore (AIIAP), and Jinnah International Airport, Karachi (JIAP), while also moving forward with the proposed privatisation of Lahore Electric Supply Company (LESCO) and Multan Electric Power Company (MEPCO).
According to a press release, the decisions were taken at the 257th meeting of the Privatisation Commission Board, chaired by Muhammad Ali, Adviser to the Prime Minister on Privatisation and Chairman of the Privatisation Commission.
The Board approved the consortium led by EY-Parthenon as the top-ranked interested party for appointment as Financial Adviser for the outsourcing of the Lahore and Karachi airports following a competitive selection process.
It also constituted a Negotiation Committee to finalise the Financial Advisory Services Agreement (FASA) with the successful consortium.
The Board further declared the proposed privatisation of LESCO and MEPCO as major transactions, requiring the appointment of Financial Advisers under the applicable Privatisation Commission regulations.
Following the approval, the Privatisation Commission will initiate the process of appointing Financial Advisers for the two power distribution companies.
LESCO and MEPCO are part of the fourth batch of distribution companies (DISCOs) identified by the government for privatisation. The privatisation process for the three earlier batches is already under way.
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The Privatisation Commission said the Board reaffirmed its commitment to advancing the government’s privatisation programme and ensuring that transactions are conducted in a transparent, competitive and professionally managed manner, with a focus on accountability and maximising value for the government and people of Pakistan.
Pakistan’s privatisation drive
Pakistan has been pursuing a privatisation programme for state-owned assets as part of efforts to reduce the government’s financial burden and improve the efficiency of public-sector entities.
As part of the programme, Pakistan International Airlines (PIA) has already been privatised.
An Arif Habib-led consortium secured a 75% stake in PIA in December last year for Rs135 billion. The majority of the proceeds are intended to be invested in the airline.
Fauji Fertiliser Company, which had initially been among the competing bidders, later joined the transaction. The consortium subsequently acquired an additional 25% stake, making it the second-largest shareholder in the airline.
