SME bank incurs loss, resulting in a negative asset of 1.17b

F.P. Report

ISLAMABAD: National Assembly Standing committee on Privatization was informed that SME bank has consistently been incurring losses resulting in a negative asset worth Rs 1.17 billion as per financial statement dated September 30, 2018.

The committee was met here at Parliament House on Thursday with Member National Assembly Syed Mustafa Muhmud in chair.

The Secretary Privatization Commission (PC) Rizwan Malik further informed that government was committed at promoting SME sector and the privatization of SME bank also aimed at strengthening and expending the network of the bank and improving the working of this much needed service.

He said currently the Government of Pakistan held 93.88 percent shares in the SME bank, whereas the rest were held by National Bank of Pakistan, United Bank Limited, MCB bank Limited, Habib Bank Limited, Allied Bank Limited and Industrial Development.

The secretary further informed the committee that commission has adopted the due process and ensured transparency in the whole process of privatization.

He informed that in pursuant to the decision of the Cabinet committee on Privatization (CCoP) the commission adopted the due process and invited expressions of interest (EOIs) for hiring of Financial Advisor.

He told that seven parties had submitted their EOIs out of which three shortlisted interested parties were issued Request for proposal (RFP) after due consideration and evolution as per criteria.

The technical and financial evolution of above parties is likely to be completed in few days, the secretary informed.

The committee at the outset expressed its concerns about the workers interest, on which the secretary PC informed that government is fully committed at protecting the interest of workers in privatization process.

He said that protection of workers interest was given priority in previous transactions and we had introduced different schemes to accommodate the workers.

In future we are also trying to structure the agreements which will protect the interests of workers, he added.

The Committee decided to invite Finance Division, State Bank of Pakistan and SME Bank to grab their opinion on the Privatization of SME Bank in its next meeting.

The committee was also given detail briefing by secretary Privatization about the Haveli Bahadar Shah Power station and Balloki Power station and informed that the Cabinet Committee on Privatization directed to immediately initiate the process of 1223 MW Balloki Power Plant and 1230 MW Haveli Bahadur Power Plant owned by National Power Management Company (Private ) Limited.

After adopting the prescribed procedure the Chairman Privatization Commission constituted the evaluation committee to evaluate the Expression of Interest (EoI) and technical & financial proposals submitted by the interested parties (IPs) for hiring of Financial Advisor for Privatization of NPPMCL.

He apprised the Committee that an amount of 02 billion $ is expected through the Privatization of these two power plants.

The secretary informed that 90 percent of the amount of privatization will be used for debt payment while remaining 10 percent will be used for the purpose of poverty alleviation in the country.

He told that the privatization of these Power stations aimed at enhancing and improving the working of the entities.

Beside the members of the committee the meeting was also attended by the officials of Privatization commission and other related departments and ministries.