KARACHI, Nov 14: The privatization of Pakistan State Oil (PSO) -— the largest oil marketing company in Pakistan -— is in advanced stages, an impeccable source at the Privatization Commission told Dawn on Monday. An official at the PSO headquarters in Karachi, who asked not to be named, confirmed that the management’s meetings with potential bidders had started from Monday. Final date of bidding would be announced after the conclusion of meetings. But for the moment, the government and the Privatization Commission were keeping details of the ongoing process of PSO sale quiet close to their chest.

The Privatization Commission Board and the Cabinet Committee on Privatization had earlier approved the strategic sale of PSO and Pakistan Petroleum Limited by December this year. “But the process had slow down owing to the holy month of Ramazan,” said the Privatization Commission official.

However, the more important reason for the slowdown was suspected to be the unforeseen delay in the privatization of Karachi Electric Supply Corporation (KESC) and Pakistan Telecommunications Company Limited (PTCL).

On Monday, the commission finally signed a share purchase agreement for KESC with the buyers –- the consortium of Hasan Associates including Al-Jummaih Group of Saudi Arabia. And to allay public fears that the sell-off deal with Etisalat — the highest bidder for PTCL — may have hit the rocks, the Privatization Commission and Etisalat jointly reaffirmed on Monday evening that both parties “concluded in principle to proceed with the deal and agreed to hold a round of meetings to discuss issues”.

But it still looked to be midway through the deal, since it was unclear as to when the PTCL transaction would be completed. Anxious to speed up the process of privatization so as to raise the much-needed funds, the government appears to have bypassed PTCL and gone ahead with the next transaction in line: that of sale of PSO.

PSO is the largest oil marketing company in Pakistan engaged in storage, distribution and marketing of petroleum products, liquid petroleum gas, compressed natural gas and petrochemicals. The commission has offered a 51 per cent strategic stake in PSO with management control. In the middle of October, the Privatization Commission Board had approved prequalification of seven bidders, out of 15 who had submitted statements of qualification for the oil-marketing company’s privatization.