ISLAMABAD, June 2: The Privatization Commission Board (PCB) on Monday decided to offload around Rs4 billion shares of four major public sector entities — PTCL, NBP, SSGC and OGDCL — till September 2003 through stock exchange to broaden the market.

The PC Board also pre-qualified the three potential bidders of Pakistan Telecommunication Company Limited (PTCL) and added three more public sector entities on the privatization agenda.

The PCB meeting presided over by Privatization Minister Dr Abdul Hafeez Shaikh gave approval to the plan for the first quarter of fiscal 2003-04 for privatization of various public sector entities by offloading GoP shares through the stock market.

The meeting reviewed the progress of the privatization process of various public sector entities and formulated its recommendations for the Cabinet Committee on Privatization (CCoP), which is expected to meet shortly.

The board gave approval for the pre-qualification of the three potential bidders, who will start due diligence during this month. The pre-qualified parties are Saudi Oger Limited (SOL), Orascom Telecom (OTH) and Menara Telecom Consortium.

The meeting approved the recommendations of Moeen Fudda committee for offloading GoP-owned shares in the public sector entities through the stock market for the first quarter of the fiscal 2003-04 with specific instructions to ensure public offering of already listed companies for broadening and deepening the stock market and to offer the benefits of privatization to common man.

The first quarter plan worth over Rs4 billion includes listing of 3.2 per cent shares of National Bank of Pakistan (NBP) in middle of July 2003, five per cent shares of Sui Southern Gas Company (SSGC) in August 2003, and initial public offering (IPO) of 2.5 per cent shares of Oil and Gas Development Company Limited (OGDCL) with the green-shoe option of 2.5 per cent in September 2003.

Pakistan International Airlines’ five per cent shares are also scheduled to be offered to the general public in September 2003.

The shares of other public sector entities for divestment through capital market will be announced in the next PC Board meeting. The meeting was told that transactions undertaken during the first six months of the present government have brought around Rs5 billion proceeds.

The PC Board recommended the inclusion of House Building Finance Corporation (HBFC), Industrial Development Bank of Pakistan (IDBP) and National Refinery Limited (NRL) in the privatization programme.

The prospective bidders for Pak Arab Fertilizers Limited were also pre-qualified, and it was decided to hold preliminary pre-bid meeting with the bidders at the earliest. The board also gave go ahead for privatization of Faletti’s Hotel, Lahore; Malam Jabba Resorts Limited, Swat; and National Investment Trust Limited (NITL).