ISLAMABAD: The National Assembly’s Standing Committee on Privatisation was informed on Wednesday that as part of the restructuring of the Utility Stores Corporation (USC), 1,203 stores have been closed, and 2,237 employees have been laid off to date.
A senior official from USC revealed that only 1,500 stores will remain operational, and they will now function on a commercial basis.
During the session, committee members raised concerns about the justification for prioritizing the USC if it is now operating profitably.
The USC representative addressed these concerns by explaining the subsidies provided to the corporation, the profits it earns, and the taxes it pays.
The Ministry of Privatisation replied that a detailed presentation on this matter would be shared at the next committee meeting.
They further stated that decisions on whether profitable entities should be privatised would depend on government policy.
The committee, however, recommended that the decision to privatize USC should be reviewed in the larger interest of the country and in consideration of the significant number of employees and their families affected by such a move.
The Chairman of the Privatisation Commission informed the committee that discussions on the privatisation of HESCO, PESCO, and FESCO are ongoing.
Terms and conditions for their privatisation are being reviewed, and a financial adviser for due diligence will be hired.
The power division has set a timeline for the process, with the privatisation set to begin by the end of May 2025, and the terms of privatisation expected to be finalized by September or October 2025.
The committee also expressed serious concerns about the appointment of board of governors for power companies and recommended that competency be a key factor in the selection process.
The committee directed that the CEOs of these companies attend the next meeting in person to discuss the progress and concerns further.
Regarding the Postal Life Insurance Company Limited (PLICL), the committee was informed that the company has around 300,000 customers and has sought Rs 8 billion from the Ministry of Finance for the current year.
The committee directed the ministry to provide detailed data for the last 4 to 5 years and to ensure the protection of policyholders. The Finance Ministry was also asked to clarify the status of funds allocated to PLICL.
On the privatisation of the Pakistan Engineering Company (PECO), officials requested additional time to address outstanding issues.
The committee granted a three-month extension and directed that the issue be resolved within that period.
It also recommended that the Chairman and Managing Director of PECO be appointed based on the majority of shareholding rather than government nominations.
PAC Meeting Focuses on Audit Objections
In another meeting, the Public Accounts Committee (PAC) convened on Wednesday to review audit objections related to the Ministry of Overseas Pakistanis.
Chaired by MNA Junaid Akbar Khan, a major issue raised was the disbursement of over Rs 2.79 billion in old-age pensions based on questionable or incorrect dates of birth.
The audit officials highlighted discrepancies in 5,131 pension cases, with some birth dates being off by as much as 30 years.
The committee was informed that over 10 million workers have been registered, with 800,000 individuals currently receiving pensions.
Arshad Mahmood, the Secretary of the Ministry, explained that before NADRA was established in 2000, identification and verification were based on systems other than NADRA-issued ID cards.
This explanation was met with criticism from the PAC Chairman, who questioned the inconsistencies between the birth dates listed on ID cards and academic records.
The committee gave the Ministry one month to resolve these discrepancies and submit a comprehensive report on the matter.
Concerns Raised Over Workers’ Welfare
During the meeting, concerns were also raised about the welfare of workers and the conditions in factories.
Shazia Marri, a committee member, emphasized the lack of job security for workers and expressed alarm at the poor treatment some workers receive from employers.
Riaz Fatyana also raised concerns about the high number of tuberculosis cases among workers in textile factories and criticized the poor working conditions and lack of health safeguards.
He pointed out that many new factories do not even maintain proper records, further exacerbating the lack of regulatory oversight in the sector.
The PAC members called for immediate action to improve the conditions in factories and protect workers’ rights.
