January 20, 2002	Sunday	Ziqa’ad 5, 1422

ISLAMABAD, Jan 19: The Privatization Commission (PC) is considering to extend by one month the date for disinvesting United Bank Limited (UBL) to April this year instead of February as was earlier planned.

Official sources said here on Saturday that some of the bidders, who had filed their Expressions of Interest (EoIs) for UBL, had requested the officials of the PC to extend the date by one month.

However, it could not be ascertained as to why the bidders were interested in having the UBL transaction delayed for one month. “We hope to have some more investors to compete for the UBL which is a very important transaction and could give us good price and that is why we have tentatively agreed to extend the date by one month,” said an official of the PC.

When contacted he said that the government was expecting some more UAE based investors to bid for UBL for which it was felt necessary to extend the date.

Three international companies, out of 10 parties, had earlier been pre-qualified for disinvesting 51 per cent shares of the United Bank Limited (UBL) along with transfer of management. The parties included The Union Bank, a foreign consortium having joint venture with Muslim Commercial Bank (MCB) and an Abu Dhabi based company having joint venture with Best Way Cement.

The UBL transaction, officials said, will give a big boost to disinvest state enterprises during the next few months.

The PC was also expecting at least two more parties to bid for Pakistan Telecommunication Company Limited (PTCL). Earlier, five Expressions of Interest (EOIs) had been received by the Privatisation Commission.

It was also said that Pak-Saudi Fertilizer will also be disinvested by March 2002.

The Karachi Electricity Supply Company (KESC) will be brought in the market for privatization in April next year. According to Minister for Privatization Altaf M. Saleem, KESC was incurring Rs50 million losses daily on account of line losses and thefts. He had also said recently that the government will introduce new law that will allow the new buyer of the KESC to recover dues from the government agencies and hospitals without much hassle. “A new package will be approved by the cabinet so that no future buyer could face financial problems,” he said adding that the new buyer was expected to inject 300 to 400 million dollar in the company to make it financially viable. The recovery of dues of the KESC was one of the major problems that needed to be settled urgently so that people could opt for it, he added.

Pricewaterhouse Cooper — the Financial Advisor of KESC — had been appointed jointly by the Privatization Commission and the ADB to finalize the deal.