ISLAMABAD, Aug 10: Privatization Commission is all set to dispose of a heavy privatization agenda this month and next month to earn substantial funds.

According to official sources, all the requirements have been met to disinvest National Investment Trust (NIT), Investment Corporation of Pakistan’s 12 Mutual Funds, GOP’s remaining 8 per cent shares in the Muslim Commercial Bank (MCB) and Thatta and Javedan Cement factories during this month.

Ten per cent shares of the National Bank of Pakistan (NBP) will also be disinvested in August through Initial Public Offering (IPO). NBP’s 10 per cent shares had earlier been offered to the public, which attracted a good response.

However, major transactions will be undertaken in September, which included Pakistan Telecommunication Company Limited (PTCL), Pakistan State Oil (PSO) Pak Arab Fertilizer and Habib Bank Limited (HBL). Efforts were also being made to privatize Faisalabad Area Electricity Board by September this year.

The sources said that there had been certain delay in disinvesting state enterprises as the government was looking for a privatization law. This law, they said, was now very much in place to stop people from indulging in any unnecessary litigation.

The PC officials were also hesitant in taking up any privatization deal in haste and that the purpose was to ensure complete transparency, which otherwise could have invited troubles by National Accountability Bureau (NRB).

“But why the State Bank is delaying its clearance for United Bank Limited (UBL) is a matter which is certainly causing an embarrassment to both the PC and the Cabinet Committee on Privatisation (CCoP) headed by Minister for Finance Shaukat Aziz,” a source said.

Aziz has reportedly said that as soon as he received the report of the central bank, he would convene the CCoP meeting whether to accept MCB’s enhanced bid of Rs12 billion or to consider Rs12.3 billion offer, given out of the process, by the second highest bidder — Abu Dhabi and Bestway Consortium.

According to Minister for Privatization Altaf Saleem both the bids will be taken to the Federal Cabinet for decision.

The Privatization Commission has so far privatized 11 units and earned Rs20 billion during the last two and half years period. If UBL deal was decided this amount could roughly reach to Rs32 billion or Rs32.5 billion.

The units, which were sold included Pak Saudi Fertilizer Company, government’s shareholding in 7 oil fields, two units of Ghee Corporation of Pakistan (EM Oil and Maqbool company), Al-Haroon Building in Karachi, machinery of the Lasbela Textile Mills, 10 per cent shares of the NBP, two separate transactions of the MCB and LPG business of the Sui Southern Gas Pipeline Limited (SSGPL) and Sui Northern Gas Pipeline Limited (SNGPL).

So far a total of Rs 79.8 billion had been collected through the privatization of 104 units since 1991. Previously successive governments utilized privatization proceeds for narrowing their fiscal deficits. However, this practice was stopped by the present government and a law was approved, which said that 90 per cent sale proceeds will be used for debt retirement and 10 per cent for poverty alleviation.

The Privatization Commission was also instrumental in the setting of various regulatory bodies including National Electric Power Regulatory Authority (NEPRA) and Oil and Gas Regulatory Authority (OGRA) in order to protect the interests of the consumers.