KARACHI, Dec 27: The government raised Rs58.9bn through strategic sales of seven companies during the calendar year 2005. This figure does not include the sale of Pakistan Telecommunication Corporation (PTCL), the modalities of which are still mired in mystery.

The outgoing calendar year saw Pakistan achieve unprecedented success on the privatization front, especially in the energy sector.

Head of Research at InvestCap, Khalid Iqbal Siddiqui, said that 2005 was a bit different from previous years as the government was able to take giant strides on the strategic sale front. Perhaps for the first time, the sale moved beyond the favourite banking and finance sector.

Sale of management rights along with 26 per cent shareholding in PTCL has not been included due to the fact that the transaction has not been completed as yet, says the InvestCap analyst. If PTCL’s sale was included in that list, the total funds raised (or pledged, one can say) would reach Rs213.9bn for 2005 and the sale of management and strategic stakes would rise to 8 companies.

The analyst has included Javedan Cement in this list, as the CCoP has approved the transaction, but the approval is subject to the decision of the court. Javedan’s sale proceeds make up around Rs4.3bn of the total amount mentioned above.

Of the seven companies privatized through strategic sale, two belonged to the energy sector, two to the cement sector, and one each to the fertilizer (Pak Arab), textile (Bolan Textile), and telecom (CTI) sectors. Of all the privatisation deals that concluded successfully during 2005, two stand out as significant — those of the National Refinery Limited (NRL) and the KESC.