ISLAMABAD, Oct 31: The government has put on hold the privatisation of three major units including flagship Heavy Mechanical Complex (HMC) on political considerations ahead of upcoming general elections next year, Dawn has learnt.
Informed sources told Dawn on Tuesday that the sale of HMC was delayed on the recommendations of Labour Minister Ghulam Sarwar Khan who hailed from Taxila and would contest next year elections against Pakistan Muslim League (N) leader Ch Nisar Ali Khan.
When contacted, an official at the ministry of industries confirmed that Heavy Mechanical Complex (HMC) sale process had been stopped but expressed his ignorance if the decision had any political background. Minister for Privatisation Zahid Hamid was not available on his official and mobile telephones over the last two days to comment on the subject.
The sale of Heavy Mechanical Complex, a conglomerate of public sector mechanical units, had reached an advanced stage and about 19 companies had already submitted their expressions of interest (EoIs).
The HMC is country’s heavy engineering concern having capability for designing, engineering and manufacturing of capital machinery, industrial plant equipment and other engineering goods. It is located in the prime industrial hub at Taxila.
Its mechanical works commenced commercial operations in 1971 whereas foundry and forge works started production in 1978. Both the works were, however, merged in 1989. The facilities include fabrication, machining, foundries, forging and heat treatment, galvanising and auxiliary shops.
The sources said the Cabinet Committee on Privatisation (CCoP) meeting presided over by Prime Minister Shaukat Aziz also dropped the privatisation of Saindak Development Corporation and Pakistan Printing Corporation Limited.
These sources said that a delegation of ruling party parliamentarians had recently called on the prime minister to postpone the privatisation of Sui Northern and Southern Gas companies so as to enable them to provide additional gas connections in their respective constituencies ahead of next year elections.
The sources said that there would be no need for a fresh decision to delay the sale of natural gas utilities because the two utilities had already been put on the back burner after the departure of former minister for privatisation Dr Abdul Hafeez Sheikh owing to an ongoing reforms process in the gas sector and introduction of a third party regime for transportation and supply of natural gas.
The Privatisation Commission has not been able to make any tangible progress on privatisation process except in case of Lasbela Textile Mills since March 2006. Not only the sale of Pakistan State Oil, Pakistan Petroleum Limited and National Investment Trust that had reached advanced stages of privatisation were delayed but the sale of Pakistan Steel Mills was struck down by the Supreme Court of Pakistan.
The companies that had submitted EoI for HMC in May this year included (i) ABM International (ii) Aqeel Karim Dhedhi Securities (iii) Bulk Management (Pakistan) Private Limited (iv) CSK Limited (v) Descon Engineering Limited (vi) Dewan Mushtaq Group (vii) Gharibwal Cement Limited (viii) Ittehad Steel Industries (ix) Kohat Cement Company Ltd (x) MCC Resources Development Company (Pvt) Ltd (xi) Niagara Mills (Pvt) Ltd (xii) Pak Gulf Construction (Pvt) Ltd (xiii) Shinsei Sangyo Co Ltd (xiv) Start Consult (xv) Shafi Associates (xvi) Sapphire Group (xvii) Techno Engineering Services (Pvt) Limited (xviii) Thal Industries Corporation Limited and (xix) Umer Group of Companies.
The HMC’s products include mix covers sugar and cement plants, chemical/petroleum, oil/gas processing plants, thermal power plant equipment, mini and micro hydel power plant equipment, road construction vessels, heat exchangers, heavy to medium electric travelling cranes, boilers, pressure vessels, heat exchangers, heavy to medium iron and steel castings, steel billets, heavy to medium free well as closed die forgings.
