ISLAMABAD, Jan 13: Pakistan on Thursday sought fresh expressions of interest for the privatization of Pakistan State Oil. The Privatisation Commission said interested parties should submit their expressions of interest by March 4 this year.
PSO controls almost 70 per cent of Pakistan's petroleum marketing business. The government has long planned to sell a 51-per cent stake in state-run PSO, together with management control, but the auction has been repeatedly postponed due to lukewarm interest.
Previously, two bidders expressed interest in buying PSO - Kuwait Petroleum Corp and Pakistan's Fauji Foundation. The new call for expressions of interest is apparently aimed at attracting other potential buyers for the firm, Pakistan's second biggest in terms of sales.
With an improved macroeconomic environment, the government has reiterated its commitment to privatize PSO by selling its 51pc equity stake, together with management control to a qualified strategic investor.
Privatization and Investment Minister Dr Hafeez Shaikh in a statement issued here on Thursday said that quality players had shown keen interest during their visits to explore investment opportunities in Pakistan and it was expected that fresh invitation for PSO privatization would generate interest around the globe and give impetus to the privatization programme.
Dr Hafeez said that all stakeholders had been taken into confidence before taking the PSO transaction to the market, while the bidding for Karachi Electric Supply Company (KESC) would take place on February 4, 2005 and Pakarab Fertilizers Limited was also approaching the bidding point.
The recent receipt of 29 EoIs for National Refinery Limited was also an encouraging sign, he added. The Privatization Commission has asked the investors interested in joining the process of PSO privatization to submit EoIs at the earliest.
Last date for submission of the statement of qualification s March 4, while bidding is expected in June 2005. PSO is the largest oil marketing company in Pakistan and is engaged in the storage, distribution and marketing of petroleum products, liquid petroleum gas, compressed natural gas and petrochemicals. -Reuters/APP
