Federal Cabinet moves forward with privatization of Petroleum Division entities

The Petroleum Division has initiated steps to implement the Federal Cabinet's decision regarding the privatization of its institutions, reported 24NewsHD TV channel Monday.

According to sources, the division has formally written to the Privatization Commission to commence the privatization process for two key entities: the Pakistan Mineral Development Corporation (PMDC) and Saindak Metals Limited.

The Federal Cabinet had previously approved the inclusion of these two companies in the privatization list. However, the fate of other major institutions within the Petroleum Division, such as Pakistan State Oil (PSO), Pak Arab Refinery Limited (PARCO), and the Sui Northern and Sui Southern Gas Companies, remains uncertain.

Sources indicate that the Petroleum Division has left the decision regarding the privatization of these remaining entities to the federal government. There are concerns about the implications of privatizing PSO, particularly regarding its LNG agreements, and whether the government will consult with the UAE, given that PARCO is a joint venture between Pakistan and the UAE.

The government will need to carefully consider these factors before making any final decisions on the privatization of these significant petroleum sector entities.