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ISLAMABAD, Jun 3 (APP):The National Assembly’s Standing Committee on Privatization Tuesday recommended urgent release of Rs.8 billion for the Postal Life Insurance Company Limited (PLICL), following concerning disclosures over a steep decline in its client base due to funding delays.
The Standing Committee meeting was chaired by Muhammad Farooq Sattar, MNA, according to press release issued by National Assembly Secretariat.
During a briefing, a representative from the Ministry of Finance updated the committee on the status of a Rs. 48 billion promissory note and the interest accrued on it. He stated that Rs. 14 billion had already been disbursed to PLICL during the 2021–22 fiscal year, with the government of Pakistan committed to releasing the remaining amount in due course.
However, the representative from PLICL informed the committee that there had not been procedural delay in releasing sufficient funds to fulfill policyholders’ claims. This funding shortfall, he said, has severely impacted customer confidence, resulting in a drastic 50% decline in the company’s client base.
After an in-depth discussion, the committee acknowledged that PLICL’s concerns were valid and recommended that Rs. 8 billion be released to the company not later than September 2025. Additionally, the committee emphasized that PLICL must take all necessary measures to safeguard the rights and interests of its existing policyholders.
The Secretary Privatization Division briefed the Committee on the implementation status on the recommendations of the previous meeting and stated that the Committee had recommended that the decision to privatize Utility Store Corporation (USC) should be reviewed.
He stated that the Cabinet Committee on Privatization/Cabinet was the competent forum for inclusion of SOE’s in the Privatization program and the recommendations of the Standing Committee will be brought before CCOP/Cabinet.
The representatives of Peshawar Electric Supply Company (PESCO) and Hyderabad Electric Supply Company (HESCO) briefed the Committee on the progress of Privatization process of the DISCO’s.
The Committee showed its serious concern over unannounced and heavy load shedding and directed to ensure to minimize the load shedding duration.