ISLAMABAD, Feb 19: The officials of the visiting three major American organisations here on Tuesday told the minister for privatization that US investors were very much interested in taking part in the privatization programme, especially in the oil and gas sector.

A nine-member US delegation from the Export Import Bank of the United States (EXIM), Overseas Private Investment Corporation (OPIC) and Trade Development Agency (TDA) met Privatization Minister Altaf M. Saleem and discussed with him issues relating to the disinvestment of the state sector.

Official sources said that after having detailed briefing from the minister, the officials of the three US organizations said that American investors were keen to take part in the privatization of Oil and Gas Development Corporation Limited (OGDCL), Pakistan State Oil (PSO), Pakistan Petroleum Limited (PPL), Pakistan Oil Fields Limited (POL) and nine oil wells.

Saleem told his visitors that the government had provided a transparent and credible system to disinvest its state sector to both domestic and foreign buyers. He said the investor confidence had been restored to a major extent because of prudent economic and financial policies being pursued.

At the same time, the sources said, the US visitors were informed that concerns of the investors had also been largely allayed and that there existed today a better environment in Pakistan for taking part in the disinvestment process.

The officials of EXIM Bank, OPIC and TDA said they were happy to note that a number of American companies were already operating in Pakistan which were also interested in participating in the privitization process.

They said that since Pakistan had extended all its cooperation to combat terrorism, it deserved all possible political and economic support from the US and its coalition partners.

The members of the delegation expressed gratitude for the bold leadership shown by President Pervez Musharraf in lending assistance to the US efforts against terrorism. They also complemented the government on its “well-thought-out” and “comprehensive” privatisation programme.

They said that OPIC was also assisting a potential US investor in bidding on a major privatization transaction and looked forward to assisting in other projects in Pakistan.

The minister for privatization informed the delegation of the privatization opportunities in the oil and gas, banking, power and telecommunication sectors and of the enabling measures undertaken by the government towards ensuring a successful programme. Key measures included macro-economic stabilization, deregulation and liberalization and strengthening of regulatory frameworks in different sectors.

The rationale for privatization was also spelled out and the transparent and open privatization process outlined by Mr Saleem. The objective, he pointed out, was to provide a level playing field to the potential investors while ensuring that only credible investors with a proven track record bought the state entities.

Trade promotion: Meanwhile, OPIC, EXIM Bank and TDA will provide financial assistance and support to the promotion of trade and economic relations between Pakistan and the US, adds APP.

This assurance was made by Ross J. Connelly, Executive Vice President & COO, OPIC, Eduardo Aguirre, Vice Chairman, EXIM Bank and Carl B. Kress, Chief of Staff of TDA in a meeting with Finance Minister Shaukat Aziz here Tuesday.

Ross J. Connelly , Executive Vice President and Chief Operating Officer of OPIC informed the finance minister that OPIC had decided to provide political risk cover to the American businessmen for investment in Pakistan.

This is a result of lifting of sanctions and a desire on the part of both the United States and Pakistan to increase bilateral economic cooperation.

He said that his organization has identified energy, privatization, oil and gas, information technology services and fertilizers for project financing.

Eduardo Aguirre, Vice Chairman, Exim Bank said the Bank would provide $120 million for trade financing and LC guarantees to promote trade between the two countries.

The Exim Bank would provide guarantees of working capital loans for US exporters, letter for credit, risk cover and medium and long term guarantee.

Carl B. Kress, Chief of Staff of TDA said his organization could offer technical assistance to Pakistan to enhance its export capability in transport, oil and gas, mineral development, IT, telecommunication, privatization and other areas. So far, TDA has extended grants for technical assistance amounting to $4.5 million and could increase it further.

Finance Minister Shaukat Aziz sought the assistance in capacity building, oil and gas, medium term financing and development of small and medium enterprises.