ISLAMABAD, Feb 14: The government has decided to privatize Pakistan State Oil (PSO) as a “single entity” within this year.

“The new petroleum policy is likely to be announced in March when we would simultaneously be starting the soft marketing of the PSO,” said Minister for Privatization, Altaf M. Saleem.

Talking to Dawn he said that a number of potential investors from western countries, Middle East and China have expressed their keen interest to take part in the privatization of the PSO.

He said the transaction structure of the PSO has improved to fetch a good price.

Mr Saleem did not believe that PSO could give a better price if privatized by unbundling the transaction. He said Wapda had been unbundled in 12 units many years ago but there was no much progress to disinvest it. “And that is why we have decided to sell PSO as a single entity.”

Responding to a question, the minister for privatisation said that the government-guaranteed debt of the KESC has soared to Rs92 billion.

He said that the government, which was currently having 63 per cent share in KESC, had decided to increase its share by 98 per cent through debt to equity swap. “And now we plan to privatize KESC’s 75 per cent shares while its remaining shares will be sold some time later,” he added.

The restructuring process of the KESC, he said, was going on for which the Asian Development Bank (ADB) has provided 250 million dollars. He said that ADB was interested to buy 7 per cent shares of the KESC and “I believe it will add value to the transaction.”

He said a number of transactions including United Bank, government’s 9 per cent shares in the Muslim Commercial Bank (MCB), Bank Alfalah, government’s shareholding in 9 oils wells and Saudi Pak Fertilizers will be ready for privatization by May this year.

Mr Saleem said that marketing of the Oil and Gas Development Corporation Limited (OGDC) will start in April this year. He said Steering Committee, which looked after the pace of privatization was meeting on 19 of this month to accelerate the process of OGDCL disinvestment.