ISLAMABAD, May 22: The Cabinet Committee on Privatisation (CCoP) will meet here on Friday under the chairmanship of the prime minister to approve the block sale of Habib Bank Limited (HBL).

Sources told Dawn on Thursday that the fate of the lingering privatisation of the HBL would be decided and approved by the committee. Initial Public Offering (IPO) of the HBL was earlier completed by the Privatisation Commission.

Block sale of the HBL had been approved by the newly-constituted PC board recently to achieve maximum privatisation proceeds. Now the deal has to be approved by the CCoP.

The PC plans to appoint financial advisers for the HBL to speed up its privatisation which is expected to be finalised by June 30.

The sources said that the prime minister is expected to accord approval to $2 billion new privatisation target, to be undertaken during the next financial year.

The target of $2 billion fixed for privatisation of many state sector entities set for 2007-08 could not be achieved.

The officials of the PC had revised downward their annual target from $2 billion to $1 billion for 2007-08 because of slow process of the privatisation, particularly during the last five months, sources said.

So far privatisation proceeds worth $400 million have been received and about $600 million are expected to be managed before the end of the current financial year on June 30.

The prime minister would be briefed about the poor state of privatisation witnessed during the current financial year which according to the PC officials was due to political uncertainty and overall weak security and law and order situation.

The sources said that although National Bank of Pakistan deal had been put on hold previously, it was being revived keeping in view the renewed market interest for which active consultations are expected to be started soon. The CCoP would be apprised about the current status of the transaction.

Similarly, JPMorgan has been appointed as financial advisors for disinvesting Kot Addu Power Company (Kapco) during the current financial year through Grand Depository Receipts (GDRs).

Expressions of Interest (EoIs) and Statements of Qualification (SoQs) have been invited from potential investors to privatise the SME Bank.

Some road-shows had been held in Singapore, Malaysia and Dubai to complete the transaction by June 30 this year. Six parties have already shown interest in the privatisation of SME Bank but, “we are expecting more investors to join the deal,” an official of the PC said.

Meanwhile, a meeting of the PC Board held here on Thursday under the chairmanship of a senior member Iftikhar-ul-Haq here decided to hold a pre-bid meeting for the privatisation of Hazara Phosphate and Fertilisers Limited in the first week of next month for creating better understanding of the transaction and to respond to the queries of the pre-qualified bidders who have recently completed the due diligence of the transaction.

The PC Board resolved to devise a road-map for the next year for taking the privatisation programme forward. It will also help in reprioritising the entire programme.

The board was briefed regarding the present status of various ongoing transactions and was informed that a financial advisory services agreement for the international offering of Kapco through GDR with JPMorgan was being finalised and would be signed soon to proceed further.

The members were informed that the parties for the sale of PTDC Motels and Restaurants have been pre-qualified while due diligence of Heavy Electrical Complex by the prospective bidders was in progress.

Ten parties have submitted their EoIs for taking part in the privatisation process of National Power Construction Company and overwhelming response from local and foreign investors was being witnessed for SME Bank, which will close for receiving EoIs and SoQs on May 31.

The PC Board members, senior representatives of the respective ministries/departments and PC officials attended the meeting.