ISLAMABAD: The federal cabinet has approved the privatization of two departments under the Petroleum Division, ARY News reported citing sources.
According to sources, the cabinet has given the green signal for the privatization of the Pakistan Mineral Development Corporation and the Saindak Metals Limited (SML).
As part of the privatization process, the Petroleum Division’s department, ENAR Petrotech Services Pvt Ltd will be dissolved. However, the government is yet to decide on the fate of other departments under the Petroleum Division, including the Pakistan State Oil (PSO), Pak-Arab Refinery Limited, and the Sui Gas Companies.
The Petroleum Division has left the decision regarding the privatization of these companies to the government. The future of the PSO’s privatization and the impact on the Liquefied Natural Gas (LNG) agreement will be considered by the government. Additionally, the privatization of Pak-Arab Refinery Limited will not be possible without the consent of the United Arab Emirates (UAE).
The government will make decisions regarding the privatization of the Sui Northern and Sui Southern Gas Companies. The Pakistan Arab Refinery Limited is a joint venture between Pakistan and the UAE, according to government sources.
READ: PSO, PARCO and Sui Gas privatization referred to center
Last month, the decision to privatize major state-owned energy companies, including Pakistan State Oil (PSO), Pak Arab Refinery Company (PARCO), and Sui gas companies, was deferred to the federal government.
The Petroleum Division submitted a summary to the Cabinet Committee regarding the privatization of PSO, PARCO, and Sui gas companies.
According to sources, the summary from the Petroleum Division suggests that the federal government should make the final decision regarding the privatization of these entities.
One key issue raised is the impact on existing LNG deals if PSO is privatized. The summary emphasizes that the government needs to carefully consider the complexities of such a move.
Similarly, the privatization of PARCO involves consulting with the UAE, given that Pak Arab Refinery Limited is a joint venture between Pakistan and the United Arab Emirates.
The decision will also cover the privatization of Sui Northern and Sui Southern Gas Companies, Pakistan Mineral Development Corporation, and Saindak Metal Limited.
The federal government will deliberate on these matters to ensure that all aspects and potential complications are thoroughly
