Privatisation Commission Inks Agreement for ZTBL Privatisation

The Privatisation Commission (PC) has formalised a Financial Advisory Services Agreement (FASA) with a consortium spearheaded by Next Capital Limited for the privatisation of Zarai Taraqiati Bank Limited (ZTBL), according to an official statement released on Friday.

The consortium comprises a range of experts, including Ijaz Ahmed & Associates, Baker Tilly Mehmood Idrees Qamar, Executives Network International, Bridge Public Relations, Savills Pakistan (Pvt.) Limited, and Prima Global Consulting (Pvt.) Limited, the statement noted.

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The PC stated, “This step underscores the government’s firm dedication to attracting investments from the private sector, enhancing banking practices, and guaranteeing the enduring viability of state-owned enterprises (SOEs).”

“More significantly, it signifies a key move toward enabling ZTBL with the resources, funding, and flexibility required to support Pakistan’s farmers and agribusinesses more effectively than ever before.”

The government has asserted that the privatisation of ZTBL will facilitate the provision of quicker and more accessible credit to small-scale farmers and communities in rural areas.

“The ZTBL privatisation aims to stimulate investment in Pakistan’s agricultural sector by integrating private sector efficiency with ZTBL’s established proficiency in agricultural finance, thereby encouraging rural development and ensuring farmers gain timely access to vital financial resources.

“The signing of this FASA marks the initial crucial phase in the privatisation process. As per the agreement, the financial advisor will undertake sell-side due diligence, conduct market analysis, engage with prospective investors, structure the deal, promote it to investors, and support the Privatisation Commission in a transparent bidding procedure,” the PC explained.