In a strategic restructuring move aligned with commitments made to the International Monetary Fund (IMF), the Government of Pakistan has approved a significant Rs105 billion transaction involving a swap of ownership in two major state-owned entities. The federal government will transfer its stake in the Pakistan Security Printing Corporation (PSPC) to the State Bank of Pakistan (SBP) in exchange for acquiring full ownership of Zarai Taraqiati Bank Limited (ZTBL). This landmark decision was made during a recent meeting of the Cabinet Committee on State-Owned Entities (CCoSOE), chaired by Finance Minister Muhammad Aurangzeb, and reflects the government’s broader reform agenda focused on enhancing governance, resolving conflicts of interest, and streamlining public-sector enterprises.
According to official details, the CCoSOE approved a share-purchase agreement that facilitates the re-merger of the National Security Printing Corporation (NSPC) with PSPC and authorizes the government’s acquisition of SBP’s equity and preference shares in ZTBL. The transaction is structured to align with IMF-mandated reforms requiring the SBP to divest its holdings in all banks and financial institutions by June 30, 2025. This condition is part of ongoing efforts to maintain central bank independence and eliminate any conflict of interest stemming from the SBP’s ownership in commercial and development banks.
Under the terms of the agreement, the Ministry of Finance will transfer its control of NSPC—previously under its direct management—to the central bank. NSPC will be merged with PSPC, which is already fully owned by the SBP. For this part of the transaction, the SBP will pay Rs41.77 billion to the federal government. This component of the deal strengthens the central bank’s role in currency and security printing while streamlining related operational entities under a unified structure.
In return, the federal government will acquire full ownership of ZTBL by purchasing SBP’s 4.015 billion equity shares for Rs8.473 billion and preference shares valued at Rs54.465 billion. The total value of the ZTBL acquisition stands at Rs62.9 billion. The remaining Rs21.16 billion difference between the two transactions will be settled against the government’s share in the SBP’s retained earnings. This adjustment mechanism ensures a balanced financial exchange without immediate strain on cash reserves.
The restructuring of these entities is viewed as a critical step toward improving operational clarity and fulfilling policy mandates under the revised State-Owned Enterprises (SOEs) governance framework. In parallel with the PSPC-ZTBL transaction, the CCoSOE also approved changes to the boards of multiple power generation companies. These changes are intended to ensure compliance with the amended SOEs Act and reflect the government’s commitment to depoliticizing the governance of public-sector enterprises. The Prime Minister has also signed off on these board-level restructuring decisions.
Furthermore, the committee reiterated the federal government’s position to retain Pakistan Railways as a “strategic and essential” asset. The decision confirms that certain key infrastructure entities will remain under state control despite broader privatization and reform initiatives.
This Rs105 billion swap between the Ministry of Finance and the SBP marks a milestone in Pakistan’s ongoing public sector reform efforts, offering both institutional clarity and adherence to international financial obligations. It also signals the government’s intent to deepen structural changes in state-owned financial institutions while maintaining key strategic assets within its control.