ISLAMABAD, Aug 2: The privatisation programme, particularly involving major ownership transfers, is likely to be put on the back burner for quite sometime as the political activities gear up ahead of general elections, it is learnt.

Sources in the Privatisation Commission confirmed in background discussions that there was strong realisation among the government quarters that it was not the right time to take in hand major transactions because of the political uncertainty arising out of looming election season.

The sources said it was more advisable to put on hold major transactions to avoid discount factor the international bidders may like to consider in their bids because of uncertain political future as well as prevailing security situation in the country.The privatisation of flagship Pakistan State Oil (PSO) has already been delayed initially on the request of the pre-qualified bidders, followed by a stay ordered by the Supreme Court of Pakistan last month. The government originally intended to hold bidding for the strategic sale of PSO along with its management transfer in the May this year.

The Supreme Court is expected to take up the case by end of this month, for which it has also sought full record of the transaction. The court will also examine whether or not the PSO’s sale was in the best national interest.

Some of the major transactions involving strategic sales on the agenda also included Pakistan Petroleum Limited (PPL), National Power Construction Company (NPCC), two power generation and distribution companies of Wapda, natural gas utilities, Heavy Electrical Complex, Pakistan Machine Tool Factory and salt and coal mines of Pakistan Mineral Development Corporation (PMDC).

The initial public offering (IPOs) of Pakistan Steel Mills is also likely to be delayed for sometime to see the impact of its technical revival effort. The sources said the sale of shares of Kot Addu Thermal Power Company was also held up because of legal issues arising out of UK’s International Power that wants to have first right of refusal as majority shareholders.

The Privatisation Commission officials, however, said the sale of shares of the public sector entities through the capital market would continue as scheduled because of financial needs for the repayment of Paris Club loans amounting to about $4 billion that were rescheduled after the 1999 military takeover and have become due now.

In this context, the global depository receipts of Habib Bank Limited are likely to be launched in September, following its initial public offering that has just been completed.

The GDRs of National Bank of Pakistan (NBP) are also on the agenda that is unlikely to be changed.

These sources said that estimates for the privatisation proceeds for the last year were kept unchanged at Rs75 billion in the budget estimates of 2007-08 although the commission had informed the government that the sale process would yield more than Rs120 billion.

They said even at the time of budget announcement on June 9, the Privatisation Commission had realised an amount of Rs86 billion that later went beyond Rs120 billion by June 29 with the global depository receipts of United Bank Limited (UBL) and sale of Hazara Phosphate Fertiliser.

This cushion of over Rs45 billion was not mentioned in the last year’s budget estimates to achieve next year’s target of Rs75 billion on account of sale proceeds, these sources explained.