ISLAMABAD, Jan 5: The Cabinet Committee on Privatization (CCoP) on Saturday approved the disinvestment of 10 per cent government’s shares in Pak Saudi Fertilizer Limited, 10 per cent in Pakistan Oilfields Limited (POL) and 20 per cent in the Bank Alfalah, formerly known as Habib Credit and Exchange Bank through stock markets.

The sale of remaining 10 per cent shares of the National Petroleum (Pvt) Limited was also approved. Earlier, 90 per cent shares of the company had been sold along with management control in 1996. The restructuring of Pakistan Engineering Company (PECO) including the golden handshake to the employees was also approved by the meeting.

It further directed the Privatization Commission (PC) to undertake more transactions through the Stock Exchanges with a view to strengthening them.

The CCoP, which was chaired by Minister for Finance Shaukat Aziz, directed the PC to go for more transactions through Stock Exchanges in view of the successful sale of the National Bank of Pakistan (NBP). The exercise, the meeting believed, would not only strengthen stock exchanges but help in broad-basing the ownership and extending the benefits of the privatization to the small investors.

The meeting lauded the efforts of the PC on the successful disinvestment of 10 per cent shares of the National Bank through stock markets. The meeting was apprised that the National Bank issue was 5.5 times oversubscribed against an issue of size of 5 per cent for Rs186.5 million. It was informed that 27,546 applications had been received for 103 million shares amounting to Rs1.04 billion.

Out of total 27,546 applications, 22,100 applications were in the size of 1,000 shares, thereby corroborating the fact that the primary objective of the government for broad-basing of ownership and passing the benefits of privatization to the general public had been achieved. In the light of the overwhelming response the green shoe option of offering an additional 5 per cent shares (18.65 million shares) thereby increasing the issue size to Rs373 million for allocation in pro-rata basis had been exercised.

The meeting was also attended by the ministers for privatization, commerce and industries, petroleum and natural resources, communications and railways, deputy chairman, planning commission, secretary general, ministry of finance and the chairman of the Board of Investment (BoI) and other senior officials.

The CCoP was also reportedly informed that due to September 11 events, the process of privatization has slowed down. However, the Minister for Privatisation Altaf M. Saleem assured the meeting that some of the major transactions including Pakistan Telecommunication Company Limited (PTCL), Habib Bank Limited, and United Bank Limited would be undertaken in the first quarter of 2002.

He said all the arrangements had been made to disinvest roughly 20 to 26 per cent shares of the PTCL along with the transfer of management, which was expected to provide roughly one billion dollar.