Daily Times

ISLAMABAD: A Senate body on Wednesday was informed that the government has planned to corporatise the State Life Insurance Corporation (SLIC) under an agreement made between ministry of finance and International Fund (IMF). The main purpose of the corporatisation was to make the SLIC as autonomous body without government influence or ministry attachment etc. These views were expressed by Privatisation Commission Chairman Muhammad Zubair while briefing the Senate Standing Committee on Commerce, which was held today in parliament house while Senate Syed Shibli Faraz was at
the chair.

The committee was also informed that there was no plan of privatization of the SLIC and the government has no intention to do so. The committee considered the State Life Insurance Corporation (Re-organization and Conversion) Bill, 2016. Unlike Pakistan International Airline, the SLIC was a profit making public entity having large networks across the country. Muhammad Zubair claimed that re-organization was done according to government commitment with the IMF. Chairman of the committee was of the view that the committee wanted to make some improvement in the SLIC and not to criticise for the sake of criticism.

According to the proposed amendment, the federal government will establish a company to be known as the State Life Insurance Company Limited by shares and cause it to be incorporated under Companies Ordinance 1984. It also revealed that all employees and officers of Corporation who have served for more than one year will be considered by the company on the same terms and conditions of service, rights and privileges.

Policies already issued by the corporation including any bonuses declared in respect thereof shall remain in force. Muhammad Zubair also said the PTCL privatisation was faulty as wrong evaluations were made. The government has learnt many lessons from such faulty agreements and now proper criteria were followed whenever a privatisation occurred.

The committee also took serious notice over absence of Finance Secretary Waqar Masood, and directed him to appear in next meeting without any excuse. “We know you are too busy but we the parliamentarians are also busy and have more work,” the committee chairman and its members observed. The committee also did not accept a representative sent by Waqar Masood and directed that only a Secretary or Additional Secretary could attend the meeting.