ISLAMABAD, Oct 9: Pakistan’s major privatization transactions have been delayed due to prevailing situation, arising out of September 11 terrorist attack on America and subsequent air strikes against Afghanistan.

“Under these circumstances bigger transactions like PTCL, National Power Company and off-loading of the government’s shareholding in 9 oil wells have been delayed,” said Minister for Privatization Altaf M. Saleem.

Talking to Dawn here on Tuesday, he said that, like rest of the world, Pakistan had also suffered due to terrorist attack on America. He said while exports were hit and revenue declined, the situation on privatization front was somewhat equally disturbing.

He agreed that the government hopes to earn roughly one billion dollar within this year by privatizing some state owned entities will not be materialized due to changing scenario.

Giving the details, the privatization minister said that Pakistan Telecommunication Company Limited (PTCL), which was to be partially disinvested in November or December this year, would now likely to be brought in the market in January 2002.

He said that offloading of government’s shares in 9 oil wells had been delayed because its foreign bidders have postponed their visit. He expressed the hope that the situation would soon normalise for the privatisation of state sector. The bidding for these 9 oil wells was to take place on October 15 this year.

Similarly, he said, National Power Company was now likely to be disinvested next year. Then the meter manufacturing plant of Sui Southern Gas Pipeline Limited (SSGPL) could not be privatized in time as some of its foreign bidders have delayed their arrival.

Nevertheless, he said, a number of transactions, in which foreign buyers were not involved, will be completed in time as per schedule.

Talking about the United Bank Limited (UBL), Mr Altaf M. Saleem said that the process for pre-qualification will be completed by October 15 and the transaction was likely to be finalised by December this year.

“Then we have worked out all necessary details to privatize National Investment Trust (NIT) and Pak Saudi Fertilizer Company before the end of 2001,” he said.

He said that out of government’s 16 per cent remaining shares in the Muslim Commercial Bank (MCB), 7 per cent will be sold within this year.

“And for disinvesting the government’s remaining shares in the Allied Bank of Pakistan (ABL), the Privatization Commission is giving an advertisement next week as there is no hitch left now in this behalf,” he said adding that the concerned court has allowed the PC to go ahead with its programme of privatizing the bank.

Pakistan Oilfield Limited (POL), which was currently under process will be ready for privatization hopefully within this year. “People are not jittery but I would say its a more of logistic rather a conceptional issue,” he said.

Talking about Karachi Electric Supply Corporation (KESC), Altaf M. Saleem said that its Financial Adviser - Price Water House— was in Singapore and had cancelled his visit for now. “But I do not think there is any delay as the transaction is likely to be completed in May 2002,” he said.

He regretted that KESC was losing over Rs50 million daily due to its line losses specially on account of electricity theft. “KESC’s 64 per cent losses have now been reduced to 48 per cent,” he said.

He said a high-level meeting has been convened on October 30 in Islamabad to discuss the affairs of the KESC.

In reply to a question the minister for privatization said that 5 per cent shares of the National Bank of Pakistan (NBP) will be offered to general public specially the small investors in November or December this year. “This will be a gift of the government for small investors as the bank’s shares will be offered on low price.”

To another question he said that the Financial Adviser of the Pakistan State Oil (PSO) — J.P. Morgan — has been asked to start the marketing of the company in January 2002 so that the transaction could be completed as early as possible.

“Then Oil and Gas Development Corporation Limited (OGDCL) will be privatized in January 2002 as its Financial Adviser, Merrill Lynch, is now ready to start its marketing,” he said. He said OGDCL was a bigger transaction in terms of money.