JERUSALEM, July 2 (Xinhua) -- An Israeli ministerial committee confirmed on Monday that government-owned Israel Postal Company will be partially privatized by selling 40 percent of the state's holdings in two stages.

In the first stage, 20 percent of the shares will be sold to a private investor, while another 20 percent will be issued to the public by listing shares on the Tel Aviv Stock Exchange in the second stage.

In recent years, there has been a decrease in the profitability and cash flow of the state postal company.

Israel's Government Companies Authority, which initiated the privatization plan, claims that it will contribute to streamlining the company and bringing it into new financial fields.