The Ministry of Industries and Production has announced a major reshaping of its operations, identifying 16 out of its 29 affiliated institutions for potential closure or privatization. This move is part of the government’s broader rightsizing strategy aimed at improving operational efficiency and reducing the burden of underperforming public sector entities.
Among the institutions under scrutiny are significant players such as the National Fertilizer Company (NFC), Pakistan Automobile Corporation (PACO), and the National Productivity Organisation (NPO). These organizations are being considered for closure or privatization in an effort to streamline operations within the industrial sector.
Minister Rana Tanveer Hussain, while briefing the Senate Standing Committee on Industries and Production, highlighted the government’s commitment to eliminating inefficiency. He emphasized that institutions failing to meet performance targets over the next six months would be shut down. Some entities, however, may be restructured under public-private partnerships, allowing them to remain operational in a new form.
The government is particularly focused on improving the performance of key institutions, with agencies like the Small and Medium Enterprises Development Authority (SMEDA) slated to remain under state control. The move to close or privatize certain institutions includes Section 42 companies, and while the initial cabinet decision approved their closure, it is now being reconsidered in light of a request for withdrawal.
The Senate Committee also reviewed the financial health of several major institutions. Pakistan Engineering Company, for instance, faces a substantial debt load of Rs 7 to 8 billion, despite holding assets worth Rs 19 billion. Similarly, Republic Motors is struggling with asset occupation and is planning legal action for asset recovery. Meanwhile, the fate of the Utility Stores Corporation remains uncertain. While plans for closure had been considered, the government has now shifted its focus toward privatizing the corporation, which operates 4,300 stores. Approximately 2,400 of these stores are running at a loss, primarily in Balochistan and Gilgit-Baltistan, while 1,900 remain profitable.
The ongoing review and restructuring efforts reflect the government’s intention to enhance the industrial sector’s efficiency while addressing the challenges posed by underperforming public institutions.
