ISLAMABAD, Aug 6: The government is considering a proposal to establish “Overseas Pakistanis Fund” which could be used for funding the new privatization deals in the country.

“We are currently seeking the advice of local and foreign experts to set up this overseas Pakistanis fund which is expected to greatly help accelerate the privatization process”, says Minister for Privatization and Investment Dr Abdul Hafeez Shaikh.

Talking to Dawn, he said that former finance adviser Shahid Javed Burki was also being consulted for establishing this fund.

He said overseas Pakistanis will be asked to deposit their capital into the proposed fund and thus become owners of the state sector entities by directly taking part in the bidding process.

The minister said that former caretaker Prime Minister Moeen Qureshi was handling an emerging market fund for infrastructure development in various countries. Mr Qureshi’s fund, he pointed out, was being financially supported by some international lending agencies including the Islamic Development Bank (IDB).

“We have not so far decided how much the government could contribute in the overseas Pakistanis fund but we can seek financial resources from the IDB”, Dr Shaikh said.

“It will be proactive fund, the purpose of which will be to facilitate the overseas Pakistanis to take part in the bidding process and own any public sector entity”, he added.

Responding to a question, the minister for privatization and investment said that Pakistan State Oil (PSO) will be disinvested in October this year. One of the interested parties, he pointed out, was the Kuwait Petroleum Company which was government owned and seeking the permission of its parliament to take part in the bidding of the PSO. “As soon as the Kuwaiti company gets the permission, the date for PSO will be announced”, he said hoping that the entire privatization process will be completed by October 2003.

The other two companies interested to take over PSO were Fauji Foundation and a Saudi firtilizer group, the minister for investment and privatization said.

He agreed that one of the reasons for slow pace of privatization was resistance in some ministries. But generally, he said, the government did not face any difficulty to disinvest state sector companies.

“Next six months are very important when Habib Bank, Allied Bank, National Investment Trust, PSO, Faisalabad Area Electricity Board, Jam Shoro power plant, Thatta Cement and Pak Arab Refinery will be privatized”, Dr Shaikh said.

In addition, he said maximum shares of National Bank of Pakistan, Sui Southern Gas Pipeline and Oil and Gas Development Corporation will be separately offloaded through stock market.

Talking about investment, Dr Shaikh said that Pakistan was fast becoming a safe place for foreign investment.