August 9, 2003	Saturday	Jumadi-us-Sani 10, 1424

ISLAMABAD, Aug 8: The government has decided to start listing of four major state-owned enterprises on the stock exchanges next month and hold the bidding of Pakistan State Oil (PSO) in October.

The decision to this effect was taken here on Friday by the Privatization Commission Board (PCB) that was presided over by Minister for Privatization and Investment Dr Abdul Hafeez Shaikh.

The board decided that a meeting of the potential bidders of the PSO should be convened within this month to finalize and announce a bidding date to be held in October.

With a view to taking full benefit of the rising trend in the capital market, it was decided to expedite initial public offering (IPO) of Oil and Gas Development Company Limited (OGDCL), Pakistan International Airlines (PIA), National Bank of Pakistan (NBP) and Sui Southern Gas Company Limited (SSGCL).

The commission was asked to accelerate the relevant procedure of the transactions so that these could be listed one- by-one at the stock exchange by end of next month, the sources said.

It was decided that the IPO of Pakistan Petroleum Limited (PPL) should be taken in hand soon after the IPO of OGDCL as it still required preparatory work. Simultaneously, the strategic sale of PPL shares would also take place but the percentage of its shares to be sold through bidding would be taken in a subsequent PCB meeting.

The government has already taken a decision to offer 5-10 per cent shares of these entities to the general public through the stock exchange to expand the capital market base.

Sources said that a committee was also constituted to give recommendations on the sale of Karachi Shipyard Engineering within 15 days period. The committee would be led by former finance minister NWFP Farooq Rahman, a member of the PCB.

The PCB was informed that seven, out of 19, parties, submitted Expressions of Interest (EoIs) for Habib Bank Limited, had sent their Statements of Qualification (SOQs) for their pre- qualification.

The pre-qualification process of HBL bidders would be completed this month in consultation with the State Bank. A data room for the pre-qualified partied will be established this month and due diligence of HBL would start in the first week of September 2003.

The meeting was informed that the elected government has so far realized Rs5.7 billion through the sale of the shares of Pakistan Oilfields Limited, D.G. Khan Cement and Attock Refinery Limited.

The meeting also pre-qualified the parties for the privatization of Jamshoro Power Company (Japco) and Faisalabad Electric Supply Company (Fesco) and approved the transaction structure for National Power Construction Company (NPCC), for which nine EOIs have been received.

Under the standard operating procedure (SOP), the decisions of the PCB are subject to validation by the Cabinet Committee on Privatization (CCoP) which is led by the finance minister. The CCoP is expected to meet by end of next week.

An official statement said the minister for Privatisation & Investment reiterated government’s firm commitment that during the process of privatization of public sector entities there would be no compromise on national interests and all stakeholders were being taken into confidence to proceed further and accelerate the pace of privatization.

He said the macroeconomic stability emerging through the continuity and consistency of the economic policies had attracted the investors from around the globe, which was a positive indicator, he added.