Cabinet Committee on Privatization (CCoP)under the chairmanship of Finance Minister, Asad Umar has directed Privatization Division to immediately initiate the process for privatization of 1233 MW Balloki Power Plant and 1230 MW Haveli Bahadar and complete it by June 1, 2019. Last year, the PML-N administration approved had that before privatization the ECC, shall review and adjust the risk allocation under PPA, which is meant exclusively for RLNG-based public sector power projects particularly pertaining to Non-Supply Event (as defined in the PPA), in the light of the prevailing power policy for private sector power projects at the time of such privatization. In a meeting Held in the last week of October the list of PSEs for privatization was reviewed including the privatization program of 1997 which subsequently was-re-affirmed by the Council of Common Interests (CCI) in 2006.
The two projects at Balloki and Haveli Bahadur Shah are owned by National Power Park Management Company Limited (NPPMC), which is wholly owned and controlled by the federal government and is being financed through the Public Sector Development Programme (PSDP).According to Sources these 2 Power plants will be offered to Saudia Arabia through privatization process. It is being said that the government has decided not to sell these projects for less than $ 2 billion.
CCoP, has undertaken privatization of PSEs under an approved legal framework in accordance with PC Ordinance, 2000 and rules, regulations and procedures framed thereunder. Since 1991 around 172 privatizations have been completed successfully by the Privatization commission generating approximately Rs 649 billion
Privatization of public sector enterprises has been the focal point of economic reforms of successive governments. The objective of the program has been to reduce the government’s direct role in commercial and industrial activities by promoting private sector to play a leading role in economic development. The following PSEs have been approved for active privatization program: (i) SME Bank Limited (ii) First Women Bank Limited (iii) 1233 MW Balloki Power Plant (iv) 1230 Haveli Bahadar Power Plant (v) Jinnah Convention Centre, Islamabad (vi), Lakhra Coal Mines (now Lakhra Coal Development Company) (vii) Services International Hotel, Lahore and (viii) Mari Petroleum Limited ( divestment of remaining shares).