ISLAMABAD, May 3: The coalition government has asked the Privatisation Commission to expedite the privatisation process to generate $3 billion by June 30 next year. The move is aimed at improving the country’s fast depleting foreign exchange reserves.

Informed sources told Dawn on Saturday that the commission had also been asked to meet its $2 billion annual privatisation target by June 30 this year by finalising some of the important transactions, including that of the National Bank of Pakistan.

The Privatisation Commission has revised downward its annual target from $2 billion to $1 billion for the fiscal year 2007-08 because of the slow process of privatisation, particularly over the past four months.

So far privatisation proceeds worth $400 million have been received and about $600 million are expected to be received before the end of the current financial year.

Sources said that after the reconstitution of the Privatisation Commission Board, the officials concerned had been asked not only to achieve the $2 billion target set for the current financial year but also collect $2 billion during the next financial year by offering more deals to local and foreign investors.

The sources said that although the NBP deal had been put on hold, it was being revived keeping in view the renewed market interest for which consultations would start soon.

Privatisation Commission Secretary Ahmad Jawad told Dawn that the block sale of Habib Bank Limited had been approved by the PC Board. “We will be shortly appointing a financial advisor for the HBL to accelerate its privatisation,” he said, adding that the deal would be finalised by June 30 this year.

He said that JP Morgan had been appointed as financial advisor for disinvesting the Kot Addu Power Company (Kapco) through Grand Depository Receipts (GDRs).

The Privatisation Commission has also invited expressions of interest and statement of qualification from investors by May 17 to privatise the Small and Medium Enterprise (SME) Bank.

The PC secretary said that successful road-shows had been held in Singapore, Malaysia and Dubai to complete the transaction by June 30 this year. He said that six parties had already shown interest in the privatisation of the SME Bank, but “we are expecting more investors to join the deal.”