ISLAMABAD, Feb 17: The Privatization Commission has decided to complete a number of strategic transactions, which include PTCL, National Refinery, Pakistan State Oil (PSO), Pak Arab Refinery
, National Investment Trust (NIT) and Carrier Telephone Industry (CTI),.by June this year
"Next few months are very important when most of these strategic transactions would have been completed including the PTCL and PSO," said Minister for Privatization and Investment Dr Abdul Hafeez Sheikh.
Talking to Dawn here on Thursday, he said that other bigger transactions like Pakistan Steel were also being undertaken to dis-invest them as early as possible as the government was no more interested to be in the business and that this job should only be done by the private sector.
Responding to a question, he said that inter-agency meeting would shortly be held to discuss various options for the privatization of the steel mills. This meeting, he said, would also be attended by the minister for industries and production and the authorities of the Pakistan Steel.
"The steel mill is a very important transaction and we do not want to complete it in haste," he said adding that all pros and cons would be assessed before finalizing the transaction. "But currently we are focussing on national refinery and the PTCL for which 29 and 18 Expressions of Interest (EoIs) have been received," the minister said. Similarly, he pointed out, the PSO would be put up for sale along with Pak Arab Refinery for which four bidders have pre-qualified.
In reply to a question, he said that after Kot Addu Power Company, certain shares of United Bank Limited (UBL) and the State Life Insurance Company would be offered to the general public through stock markets.
The government, he said, still held 49 per cent shares of the UBL. The purpose, he said, was to largely benefit the common man by off-loading certain percentage of shares though public offering.
"The government wants to have a broad-based privatization by associating a common man in this process," Dr Sheikh said adding that letters have been written to the chief ministers, the State Bank governor and heads of the commercial banks to facilitate the general public in acquiring shares of various state sector entities.
He said that a hot line has been established by the Global Securities to help provide one form to every individual, interested in buying shares of any corporation.
In this behalf he referred to Kot Addu's public offering and said that non-compliance of any agency/bank would be taken seriously and that everybody should get one form to buy certain percentage of shares.
To a question, the minister for privatization and investment said that so far the Privatization Commission has given 400,000 shares amounting to Rs17.5 billion to the general public. "But the net gain of the public has reached to roughly Rs30 billion due to increase in the value of shares and the amount of dividend."
Asked about the total sale proceeds of the privatization he said that so far 145 state sector units have been dis-invested. The privatization process started 15 years ago and during its first 10 years sale proceeds worth Rs60 billion were received, Rs6 billion each year, he added. But during the first three years of President Musharraf's government the sale proceeds reached to Rs36 billion which meant Rs12 billion every year. "Nonetheless during the last two years of the civilian government the amount of sale proceeds has reached to Rs 75 billion which is quite an achievement", Dr. Hafeez Sheikh said.
