ISLAMABAD, June 28: The Cabinet Committee on Privatisation (CCoP) on Wednesday approved the sale of 7.3 per cent (96 million) shares of Karachi Electric Supply Company (KESC) to its employees at the rate of Rs1.65 per share.
In this way, the government's remaining shares in the KESC will come down from 25.65 per cent (337.7 million) to 18.35 per cent.
This was disclosed by Federal Minister for privatisation Zahid Hamid while speaking to a select group of newsmen after the meeting.
Minister of State for Information and Broadcasting Senator Tariq Azim and Zahid Aziz, financial transaction manager of the PC were also present on the occasion.He said the meeting presided over by Prime Minister Shaukat Aziz also decided to float Global Depository Receipts (GDRs) of OGDC by September 30. He said subsequently 53 per cent shares of the OGDC will be privatised.
He said the formation of the Council of Common Interests (CCI) to reconsider the privatisation of Pakistan Steel Mills (PSM), in line with the judgment of the apex court, was at an advanced stage.
He quoted the prime minister as saying that the government was fully committed to the process of privatisation and will continue with it in an open and transparent manner.
The prime minister said the government “respects the Supreme Court's judgment with regard to the Pakistan Steel Mills case.”
He noted that the apex court had upheld the Privatisation Ordinance. This, he said, augurs well for the continued process of privatisation.
The prime minister said that the economic policy of the government was governed by the principles of deregulation, liberalisation and privatisation accompanied by transparency and good governance and the government will continue to pursue this policy.
Zahid Hamid, while answering a question, made it clear that the privatisation proceeds would not be used to abridge the budget deficit. He pointed out that under the law 10 per cent of the budget proceeds were to be used for poverty alleviation while the remaining 90 per cent were meant for debt retirement.
He said the CCoP on the recommendation of the PC board has extended the date for final payment of the bid amount offered by Azgard for the purchase of Pak American Fertiliser Ltd (PAFL) till July 15.
He pointed out that Ibrahim Group was the highest bidder which failed to deposit even the first instalment after depositing earnest money. He said the earnest money was forfeited under the law and the group was black-listed and would not be able to purchase any entity offered for privatisation. He said the commission will also sue him for the loss of Rs3 billion caused to it.
He justified the extension given to Azgard for final payment saying that it had proved its bonafide by depositing an amount of Rs4 billion. He said the Azgard had also agreed to pay a mark up on the remaining payment at the rate of 11.14 per cent which will come to Rs160 million if the payment was made on the last date.
The privatisation minister said the rigorous pre-bidding procedure was so open that there was no room to dole out any favour to any body.
The CCoP also approved the sale of assets of Lasbella Textile Mills.
The CCoP approved the inclusion of SME Bank in the Privatisation programme. The proposal was fully supported by the governor State Bank of Pakistan.