In a major development, the government approved a Rs. 105 billion transaction involving the transfer of its ownership in the Pakistan Security Printing Company (PSPC) to the State Bank of Pakistan (SBP) in exchange for full control of Zarai Taraqiati Bank Limited (ZTBL). The move is part of a commitment made to the International Monetary Fund (IMF) to address structural reforms.

The decision was finalized during a meeting of the Cabinet Committee on State-Owned Entities (CCoSOE), chaired by Finance Minister Muhammad Aurangzeb. The committee also declared Pakistan Railways as a “strategic and essential” entity, ensuring its retention under government control.

The Pakistan Security Printing Company (PSPC), originally created for printing prize bonds and currency notes, was previously owned by the SBP. Its sister entity, the National Security Printing Company (NSPC), which handled government document printing, was under the Ministry of Finance until the last PML-N government (2013-18) transferred it to the SBP for merger with PSPC. Under the new arrangement, the SBP will pay Rs41.77 billion to the Ministry of Finance for the acquisition of NSPC.

In return, the SBP will transfer its total shareholding in ZTBL to the federal government for Rs62.9 billion. This transaction aligns with the IMF’s requirement for the SBP to divest its stakes in all banks and financial institutions by June 30, 2025, to eliminate conflicts of interest.

The Rs21.16 billion difference between the two transactions will be settled by adjusting the government’s share in the SBP’s retained profits.

An official statement confirmed that the CCoSOE approved the signing of a share-purchase agreement between the Ministry of Finance and the SBP. This includes the re-merger of NSPC with PSPC and the acquisition of SBP’s shares in ZTBL. The Finance Division will purchase 4,015,599,174 equity shares in ZTBL at Rs8.473 billion and acquire SBP’s preference shares in ZTBL at a fixed value of Rs54.465 billion. The proceeds from the NSPC transaction will be adjusted against the ZTBL share purchase, with the remaining amount settled through the SBP’s retained surplus profits.

In addition to the asset swap, the CCoSOE approved the restructuring of the boards of directors for several power sector entities, including GENCOs Holding Company Limited (GHCL), Jamshoro Power Generation Company Limited (JPCL), Central Power Generation Company Limited (CPGCL), Northern Power Generation Company Limited (NPGCL), Lakhra Power Generation Company Limited (LPGCL), and National Power Parks Management Company Limited (NPPMCL). The restructuring ensures compliance with the State-Owned Enterprises (SOEs) Amended Act and SOEs Policy 2023. The new board members had already been approved by the prime minister.