April 9, 2003	Wednesday	Safar 6, 1424

ISLAMABAD, April 8: The Privatization Commission Board, which met here again on Tuesday, approved in principle the Initial Public Offering (IPO) of GoP shares in the Oil and Gas Development Company Limited (OGDCL).

The meeting also decided to undertake an additional offer of GoP shares in the National Bank of Pakistan (NBP), the PTCL, the Pakistan International Airline Company (PIAC) and the Sui Southern Gas Company (SSGC). Privatization & Investment Minister Dr Abdul Hafeez Shaikh chaired the meeting.

The PC Board meeting decided to further accelerate the pace of the privatization of public sector entities and to move forward with the ongoing process of strategic sale of the Pakistan State Oil (PSO), the Pakistan Telecommunication Company Limited (PTCL), the Oil & Gas Development Company Limited (OGDCL), the Habib Bank Limited (HBL) and the Karachi Electric Supply Corporation (KESC).

According to a PC announcement, the meeting constituted a committee, which will make recommendations at the earliest for approval of the PC and subsequently the CCoP regarding the quantum of shares to be divested, the mode, the timing and sequencing of these divestments. The committee will also make recommendations regarding other offerings in the public sector entities.

A committee was also formed to finalize the financial advisory contract with the highest ranked party for the FESCO privatization transaction. The PC Board was apprised and briefed about the status and progress of the KESC, the FESCO and the JPC transactions and gave its approval to the transaction structures for the FESCO and the JPC.

CCOP MEETING: The Cabinet Committee on Privatization (CCoP) on Tuesday reviewed the present status of the privatization of the PTCL, the PSO and the HBL, and issued necessary instructions for the early completion of their transactions.

Official sources told Dawn the meeting, presided over by Finance Minister Shaukat Aziz, discussed at length various bottlenecks that were hampering the process of disinvestment in the country. The meeting too serious notice of the opposition being made by some ministries against the ongoing process of privatization.

A Privatization Commission statement issued after the meeting said the meeting also decided to invite fresh expression of interest (EoI) for the HBL keeping intact the EoIs received earlier. The CCoP also agreed with the proposal of the Privatization Commission Board that the affairs of the ABL which already stands privatized with regard to the remaining GoP shareholding and the bank’s future be decided by the State Bank under the Banking Companies Ordinance.

The Privatization Commission, however, would continue extending full support and cooperation to the SBP to improve the bank’s operations. The CCoP also agreed to settle the long outstanding claim of the unsuccessful buyer of the Harnai Woolen Mills.

The meeting approved the recommendation of the Privatization Commission Board regarding the bidding results of ICP-State Enterprise Mutual Funds (SEMF) and authorized the PC to issue Letter of Acceptance (LoA) to the PICIC — the highest bidder for ICP-SEMF which offered Rs786.786 million for transfer of the management rights of this Fund.

Earlier, Finance Minister Shaukat Aziz said the government fully supported the privatization programme as a measure of continuity of economic reforms.