November 08, 2008	Saturday	Ziqa'ad 9, 1429

ISLAMABAD, Nov 7: Prime Minister Yousuf Raza Gilani approved on Friday a plan to privatise Qadirpur gas field, Small and Medium Enterprises Bank and Heavy Electrical Complex.

The decision comes two days ahead of a scheduled meeting of the executive board of the International Monetary Fund (IMF) that will decide about a loan to Pakistan.

The decision, however, ignores strong opposition of trade unions of these units which have threatened to hold protests against the sale of what they said amounted to selling family silver.

Some political circles have criticised the plan to sell national assets at a time when it will be difficult to get a fair price.

While in opposition, the PPP itself had questioned the sale of state-owned units and called for a debate in parliament before any transaction.

Pakistan requires $3.5 billion to $4.5 billion to repay its debts during the current fiscal year. A similar deficit is expected for the next year as well. The government did not disclose the price it expects to get for the units.

The Cabinet Committee on Privatisation (CCOP) headed by the prime minister approved the plan for the sale of 37 per cent shares of Oil and Gas Development Company Limited’s Qadirpur gas field along with the transfer of operational control.

Stressing the need for taking all stakeholders on board, Mr Gilani urged the ministry of privatisation and the Privatisation Commission to address ‘all concerns’ before the gas field’s privatisation.

He said that quality players should be brought in for accelerating exploration and production.

Stressing the need for maintaining ‘utmost transparency’, Mr Gilani urged the ministry of privatisation to ensure that investors ensured creation of new job opportunities besides protecting jobs of existing employees.

The CCOP also approved the severance package agreed with the SME Bank employees and the bank’s valuation.

The bank’s transaction will include divestment of 93.88 per cent government shareholding along with the transfer of management control. The SME Bank has an unrestricted commercial banking licence.

The potential buyer will have to retain the name ‘SME Bank Ltd.’ for one year after the sale and maintain its charter for at least three years.

The government of Pakistan will retain the right to appoint at least one director on the board of directors.

The CCOP also approved the valuation of Heavy Electrical Complex and directed the Privatisation Commission to go ahead with the bidding process.

The buyer “shall continue to operate the company’s manufacturing facility and shall not in any way abandon, cease to operate or otherwise shut down the existing company manufacturing facility”.

The cost of ‘Golden Handshake Scheme’ for permanent workers and Voluntary Separation Scheme for the executives will be shared equally by the new buyer and the Privatisation Commission. The bidder shall bid on the basis of audited accounts of June 2006 and may also factor in the latest un-audited accounts available prior to the bidding.