Govt advances PNSC privatisation, moves to sell 30% stake to NLC

The first committee, headed by the Prime Minister’s Adviser on Privatisation, includes senior officials from the Finance, Law and Justice, and Maritime Affairs ministries

ISLAMABAD: The federal government has accelerated plans to transfer a 30 percent stake in the Pakistan National Shipping Corporation (PNSC) to the National Logistics Corporation (NLC), establishing two high-level committees to complete the financial, commercial, and legal framework for the transaction.

According to a briefing presented by the Ministry of Maritime Affairs to the Economic Coordination Committee (ECC), the committees will determine key aspects of the deal, including the share price, payment schedule, dividend distribution, utilisation of sale proceeds, and the transfer of management control.

The first committee, headed by the Prime Minister’s Adviser on Privatisation, includes senior officials from the Finance, Law and Justice, and Maritime Affairs ministries, along with the Chairman of the Securities and Exchange Commission of Pakistan (SECP) and the Director General of NLC. Its mandate is to finalise the financial and commercial structure of the agreement, including the valuation of shares, payment mechanism, dividend arrangements, and the injection of funds into PNSC.

The second committee, led by the Secretary of the Law and Justice Division, will oversee the legal documentation required for the transaction. Its responsibilities include preparing the Share Purchase Agreement, Shareholders’ Agreement, and the legal framework governing the transfer of management control.

The ECC endorsed the proposal and emphasised the importance of increasing private sector participation in future maritime initiatives to improve efficiency, strengthen governance, and unlock the sector’s economic potential.

To ensure smooth implementation, the Ministry of Maritime Affairs has also proposed an Implementation Committee chaired by the Prime Minister’s Adviser on Privatisation and co-chaired by the Minister for Maritime Affairs. The committee will develop a roadmap and supervise the execution of the transaction.

The government had previously granted in-principle approval for NLC to acquire a 30 percent stake in PNSC, along with management control and consolidation rights, subject to all applicable legal requirements.

PNSC, a state-owned enterprise listed on the Pakistan Stock Exchange, remains majority-owned by the federal government, which holds 87.56 percent of its shares. Public investors own 10.87 percent, while the PNSC Employees Empowerment Trust holds the remaining 1.57 percent.

The national shipping company currently operates a fleet of 14 vessels, including three recently added ships. Despite fluctuations in earnings, PNSC has maintained strong profitability, posting net profits of Rs30 billion in FY2022-23, Rs19.4 billion in FY2023-24, and Rs20.4 billion in FY2024-25.

Established under the Pakistan National Shipping Corporation Ordinance, 1979, the organisation has undergone legislative reforms in recent years, with amendments introduced in 2023 and 2024 to align its governance framework with the State-Owned Enterprises Act, 2023. These changes are intended to improve transparency, accountability, and operational performance as the government advances its broader state-owned enterprise reform agenda.