Process for Fesco’s share offering initiated

Updated October 15, 2016

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ISLAMABAD: Ishaq Dar chairs a meeting of Privatisation Commission on Friday.
ISLAMABAD: Ishaq Dar chairs a meeting of Privatisation Commission on Friday.

ISLAMABAD: The Privatisation Commission has initiated process for Initial Public Offering (IPO) of Faisalabad Electric Supply Company (Fesco) as the government decides to reactivate its privatisation programme.

On Friday, Minister of State and Chairman Privitsation Commission Muhammad Zubair made a detailed briefing to Minister of Finance Ishaq Dar regarding the implementation status of decisions taken by the Cabinet Committee on Privatisation.

Mr Zubair further apprised the finance minister on the interest shown by foreign investors in various sectors.

It was learnt that the government has decided to shift the privatisation mode of the power sector from strategic sale to divestment through capital markets in order give union a chance to perform.

According to the Commission, Wapda union representatives have assured the government that if the privatisation process of power sector entities is halted, it would help reduce line losses and increase revenue recoveries within one year.

The labour unions of public sector entities are being engaged by the government and direct meetings have already been held the Wapda Hydro Electric Workers Union and labour representatives of PIA.

At political level, the government has also engaged political parties in the parliament to address their concerns and build consensus.

The Privatisation Commission has already completed the transaction structure of PIA, Pakistan Steel and power sector entities. Sindh government has been offered to acquire Pakistan Steel with all its assets and liabilities since 2015, but the provincial government has so far been unable to come up with a definite response.

Since, the province has a new administration under Chief Minister Murad Ali Shah, the Cabinet Committee on Privatisation has asked the Privatisation Commission to reinitiate the process.

Published in Dawn, October 15th, 2016