ISLAMABAD, July 2: The pre-qualified bidders of Pakistan State Oil (PSO) have raised certain issues which are being addressed to complete the transaction soon, said the minister for privatisation and investment.

“We are completing various formalities with all the seven pre-qualified bidders by consulting the Ministries of Finance and Petroleum and Natural Resources in this regard,” Mr Zahid Hamid told Dawn.

Asked about the financial worth of the PSO, he said the Privatization Commission (PC) was currently in the process of evaluations after which the reference price would be fixed.

He said the PC was actively engaged with all the stakeholders to complete the PSO transaction.

The minister denied that the parliamentary committee on defence had expressed concern last week over PSO’s privatisation, by saying that it was strategically a wrong decision and can expose the military supply line.

“The parliamentary committee did not raise any such issue and we are going ahead with the planned PSO transaction,” the minister asserted.

To a question, he expressed the hope that an issue pending in Supreme Court about PSO will be decided on July 12. He did not see any other problem hindering the PSO privatisation.

Responding to a question, he said a number of transactions were expected to be finalised during the next few months to be started with Global Depository Receipt (GDR) of Habib Bank Limited.

“The HBL's IPO will commence in July, to be followed by the GDR of Kot Addu Power Company (KAPCO).”

Similarly, he said strategic sale of Jamshoro Power Company, Pakistan Machine Tool Factory (PMTF), Heavy Electrical Complex (HEC), Hazara Phosphate Fertiliser, National Power Company, Small and Medium Enterprise (SME) Bank, National Investment Trust (NIT), Cold and Salt Mines, and 26 hotels and motels of Pakistan Tourism Development Corporation (PTDC) will be carried out during 2007-08.

Asked about the disinvestment of Pakistan Petroleum Limited

(PPL), Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company (SSGC), Mr Zahid Hamid said their financial advisors were working on remaining issues after which they would be put up for privatisation.

To a question, he said that the PC was not facing any opposition by the ministry of petroleum and natural resources to disinvest oil and gas entities.

“In fact, we are receiving their cooperation to privatise these important power sector entities quickly,” the minister said.

Asked about the investment, he said the government was going to have an all time high over $6 billion foreign investment in 2006-07 against $3.9 billion of 2005-06.

He said over $7 billion foreign investment also included $2 billion portfolio investment, of which there were $1.5 billion GDRs of OGDCL ($738 million) and UBL's ($565 million).

“This is the most successful year in terms of privatisation proceeds,” he said, adding total foreign investment was likely to exceed $6.5 billion in 2006-07. The total FDI by the end of May this year was to the tune of $4.2 billion.

Giving details, he said that 20 per cent foreign investment came in the manufacturing sector, 11 per cent in the oil and gas exploration, 33 per cent in telecommunications, 21 per cent in financial business, three per cent in power and 10 per cent in other services.

He said 41 per cent foreign investment came from Europe which included 18 per cent from the Netherlands, 17 per cent from China, 16 per cent from the US, 11 per cent from the Middle East and nine per cent from the UAE.

Answering a question, he said the biggest portfolio investment came from the US, followed by the UK (33 per cent) and Singapore (15 per cent).