News Desk
ISLAMABAD:
The federal government has abandoned the proposed plan to privatise Pakistan National Shipping Corporation (PNSC) via public offering of a significant number of shares at the stock exchange.
The objective was to explore additional funding sources by increasing private shareholding through the stock exchange to increase its fleet size.
PNSC was established under the Pakistan National Shipping Corporation Ordinance 1979 and is a company listed on the Pakistan Stock Exchange (PSX). The government of Pakistan holds 87.56% shares, while the general public and the PNSC Employees Empowerment Trust hold 10.87% shareholding.
It was informed at a high-level meeting that in terms of paragraph 11 of the State-Owned Enterprises (Ownership and Management) Policy, 2023 (SOE Policy, 2023), the categorisation of an SOE was required to be made by the ministry concerned in consultation with the relevant board.
The matter was accordingly referred to PNSC for consideration by its board of directors. The board, in its meeting on May 17, 2024, resolved that PNSC should be retained and categorised as a “strategic state-owned enterprise.”
The board noted that PNSC was a profitable commercial entity providing direct services to other organs of the state and ensuring effective supply chain schedules. It also acts as a second line of defence during conflicts, sanctions, and wars.
The Ministry of Maritime Affairs had noted that PNSC had an ageing fleet of ships, which would outlive their operational utility in the coming years.
The ministry, therefore, submitted a summary to the Cabinet Committee on State-Owned Enterprises (CCOSOEs) with the recommendation that PNSC may be considered for privatisation through the stock exchange to generate a public offering of a sizeable number of shares.
However, it was also proposed that views of the strategically concerned ministries be sought before including PNSC in the privatisation list. The Cabinet Division advised that the Ministry of Maritime Affairs should first obtain their views and comments.
