Government Advances PNSC Stake Sale to NLC

The federal government has constituted two sub-committees to finalize the financial, commercial, and legal framework for the proposed sale of a 30% stake in the Pakistan National Shipping Corporation (PNSC) to the National Logistics Corporation (NLC). The process will determine the share price, payment terms, dividend distribution, utilization of proceeds, and the transfer of management control, according to a Ministry of Maritime Affairs briefing presented to the Economic Coordination Committee (ECC).

The first sub-committee, led by the Adviser to the Prime Minister on Privatisation, comprises the secretaries of Finance, Law & Justice, and Maritime Affairs, along with the Chairman of the Securities and Exchange Commission of Pakistan (SECP) and the Director General of NLC.

Its responsibilities include finalizing the transaction value, payment mechanism, dividend-sharing arrangement, and the process for channeling the sale proceeds into PNSC.

The second sub-committee, chaired by the Secretary of the Law & Justice Division, includes officials from the Finance, Maritime Affairs, and Privatisation divisions, as well as representatives from SECP and NLC.

It will oversee the legal aspects of the deal, including drafting the Share Purchase Agreement, Shareholders' Agreement, and the framework for transferring management control.

The ECC approved the proposal and emphasized greater private-sector participation in future projects to enhance efficiency and unlock the full potential of Pakistan’s maritime industry.

The Ministry of Maritime Affairs also recommended establishing an Implementation Committee, jointly led by the Adviser to the Prime Minister on Privatisation and the Minister for Maritime Affairs, to prepare a detailed roadmap and supervise the completion of the transaction.

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

PNSC is listed on the Pakistan Stock Exchange, with the federal government owning 87.56% of its shares, the general public holding 10.87%, and the PNSC Employees Empowerment Trust owning the remaining 1.57%.

The corporation currently operates a fleet of 14 vessels, including three recently added ships. It posted net profits of Rs30 billion in FY2022-23, Rs19.4 billion in FY2023-24, and Rs20.4 billion in FY2024-25.

PNSC was established under the PNSC Ordinance of 1979, which was amended in 2023 and 2024 to bring it into conformity with the State-Owned Enterprises Act, 2023.