ISLAMABAD, Oct 24: The Cabinet Committee on Privatization (CCoP), which met here on Thursday with Finance Minister Shaukat Aziz in chair, noted with satisfaction that during the last three years, transactions finalized by the Privatization Commission, had resulted in privatization proceeds of Rs36.2 billion from 23 transactions.

Out of this, about half of the proceeds were credited in foreign exchange ($306.8 million). This was appreciated by the CCoP while reviewing the performance of Privatization Commission.

This amply demonstrated the confidence of foreign investors, including overseas Pakistanis in the policies and economic environment of Pakistan. The major foreign investments came from the sale of LPG businesses of SNGPL and SSGCL; UBL and working interest in oil fields.

The CCoP also gave approval to the highest bid received for Investment Corporation of Pakistan Lot-B Mutual Funds.

The highest bid of Rs302.5 million for the management rights of ICP Lot-B Mutual Funds was offered by PICIC.

Disinvestment of Lot-B of ICP Mutual Funds and transfer of management rights to a quality investor was a corner stone transaction and will open opportunities for the transfer of NITL transaction, State Enterprise Mutual Funds (SEMF) of the ICP, it was stated.

The CCoP noted that in order to broad-base ownership of shares and to provide depth to the stock markets, the government had divested shares of MCB and POL worth Rs800 million through the stock exchanges.

In addition, shares worth Rs1.15 billion for NBP in the IPO and secondary offer were sold to the general public.

Five per cent additional shares of NBP had been offered for subscription recently and it had been oversubscribed four times despite the fact that shares were offered at a higher rate i.e. Rs21 per share. In case of NBP alone, 30,000 new small investors/shareholders had benefited from government divestments.

The CCoP directed that vehicle of stock exchanges should continue to be used by the Privatization Commission for divestment of shares in the state owned enterprises.

The CCoP was further informed that pre-bid work for major transactions such as PSO, NITL, OGDCL, Pak-Arab Fertilizers, HBL, KESC, PTCL had been completed. These transactions which were at an advanced stage of privatization and bidding was likely to mature during November 2002 to March 2003.

The CCoP termed the overall privatization progress made in the last three years as “an impressive performance” of the Privatization Commission and highly appreciated the work done.

The meeting noted with satisfaction the confidence shown by the investors in the investment climate in Pakistan.

The CCoP meeting was attended by the federal ministers for industries, production & commerce, communications & railways, labour and manpower, privatisation; deputy chairman, Planning Commission; and other senior officers of the ministries and divisions concerned.

Earlier, talking to mediamen after the bidding of ICP Lot-B Mutual Funds here, Privatisation Minister Altaf M. Saleem said the bidding for Lot-B of ICP Mutual Funds was participated by five parties. The representatives of print and electronic media opened the sealed bids.

ABAMCO Ltd, Aqeel Karim Dhedhi (Pvt) Ltd, Consortium of Pak Kuwait Investment Co & Al Meezan Investment Management Ltd, PICIC and West Minister & Eastern Financial Services Ltd & Pak Venture Fund submitted their sealed bids.

ABAMCO remained the highest with an offer of Rs260 million; Consortium of Pak Kuwait Investment Co & Al Meezan Investment Management Ltd gave an offer of Rs240.1 million; while PICIC was the third with an offer of Rs207.5 million.

However, during the second open bidding round, PICIC raised their offer to Rs302.5 million.

The Privatization Commission Board, which met under chairmanship of Privatization Minister Altaf M. Saleem shortly after the conclusion of the bidding process, recommended the highest offer for the approval of CCoP.

Later the Board reviewed the progress of various public sector entities and expressed its satisfaction over the pace and the process of the privatization. The Board adopted the audited accounts of the Privatization Commission for the year ended June 30, 2002.

The Board approved the offer of 10.2 per cent shares to UBL’s eligible employees in terms of the agreement with their representatives.—APP