PESHAWAR, Jan 31: After failing to reduce its share-holding in the Bank of Khyber in fulfilment of its commitment with one of its foreign donors, the NWFP government is trying to accomplish the task by the end-March, sources told Dawn.
In accordance with one of the goals set under its multi-million dollar loan agreement with the World Bank, the NWFP government was supposed to reduce its share holding in the public sector bank by Dec 2004. However, the MMA-led government failed to accomplish the task.
"Though the government could not reduce its share-holding within the period agreed with the World Bank, it has undertaken fresh bids to bring its share in equity partnership to 51 per cent," said an official.
The sources said that the government's failure to fulfil the condition within the agreed period would not negatively impact the World Bank's lending for the Structural Adjustment Programme-III.
An understanding between the NWFP government and the World Bank, said the sources, regarding reducing the share-holding in the BoK's equity by March was already there.
"The delay is not likely to cause harm to the government as far as the WB's loan is concerned," said an official source. The provincial government holds 87 per cent share in BoK's equity with the remaining share owned by a German financial development institution, DEG.
The government had acquired the services of a consultancy firm, of international repute to help the bank's management in materializing the move of privatizing the public sector entity, the sources added. The government, said the sources, had accelerated its efforts to offer BoK's share to public.
