The government is likely to project less than Rs 50 billion from privatisation proceeds in the budget 2017-18 as it is an election year, sources said. Privatisation proceeds were budgeted at Rs 50 billion for the current year - a target not likely to be met and budget for fiscal year 2017-18 would set a much lower target for privatisation proceeds, informed sources told this correspondent.

The privatisation programme of the government is now on the back burner till after the general elections 2018; it is evident from there being no Chairman of the Commission and an acting secretary. The chairman''s position fell vacant on 29 January but acting chair was given charge for one meeting - to discuss the privatisation of Mari Petroleum Company Limited (MPCL) and SME Bank. Secretary Privatisation Commission''s position has been vacant since 24 March while Shahid Mahmood has the additional charge of Secretary PC.

Sources reveal that with privatisation on the back burner the sorely needed restructuring plan for public sector entities is also being ignored.

In January 2017, the Cabinet Committee on Privatisation (CCoP) approved divestment of 18.3 percent government shareholding in MPCL either through joint-venture partners including Fauji Foundation and OGDC or the domestic stock exchange. In the same meeting transaction structure for the privatisation of SME Bank was also approved.

Entities which are haemorrhaging the economy notably Pakistan Steel Mills (PSM), Pakistan International Airlines (PIA) and power sector entities continue to be as much of a burden on the exchequer as during the previous administration. This is a digression from the PML-N manifesto 2013 which states that as several key state owned enterprises like PIA, Railways, PSM, WAPDA and others institutions are a major drag on Pakistan''s economy they would be restructured/privatised.

Unlike previous regimes, only profitable entities have been privatised during the current tenure of the Pakistan Muslim League (N) administration through offering government shares in the capital market. The government sold 20 per cent shares of the United Bank Limited (UBL) at Rs 38.2 billion, 5 percent shares of the Pakistan Petroleum Limited (PPL) at Rs 15.34 billion, 11.46 percent shares of the Allied Bank Limited (ABL) at Rs 14.44billion, 41.5percent shares of the Habib Bank Limited (HBL) at Rs 102.34 billion and 88 percent shares of the National Power Construction Corporation (NPCC) at Rs 2.5billion.

The present government''s pledge under the three-year 6.64 billion dollar Extended Fund Facility (EFF) of International Monetary Fund (IMF) approved in September 2013 that privatisation of 65 PSEs (with 30 to be fast tracked) would be implemented within a stipulated time period has not been met.

Copyright Business Recorder, 2017