ISLAMABAD, June 20: The government is expecting to earn $2 billion by privatizing Karachi Electricity Supply Corporation (KESC), Pakistan State Oil (PSO), Oil and Gas Development Company Limited (OGDCL) and some other minor units by December 2002, says the privatization minister.

“And this $2 billion amount excludes the privatization of Pakistan Telecommunication Company Limited (PTCL), whose evaluation is still to be done,” Privatization Minister Altaf M. Saleem said.

He said PTCL’s earning would be additional, which otherwise could have given better price, had it been sold six years ago.

Briefing reporters here on Thursday about the major transactions, he said that OGDCL’s 51 per cent and PSO’s 45 per cent shares would be offloaded within this year.

So far, the minister said, the government had earned $375 million, which also included the amount of oil fields, disinvested recently by the government. Responding to a question, he said that no decision had so far been taken to give the billing department of KESC to the private sector.

Mr Altaf also said that statement of qualifications (SoQs) had been received from Orascom of Egypt and Saudi Ojer Group (Rafiq Hariri of Lebanon) for the disinvestment of 18 to 26 per cent strategic shares of PTCL along with the transfer of management. Another party — Turk Cell of Turkey — did not deposit SoQs, therefore, only two parties will be contesting for PTCL.

Talking about UBL, he said the State Bank was evaluating the MCB’s highest bid of Rs8.5 billion, and the decision in this regard was expected by next Wednesday.

The minister said the Privatization Commission had not kept any reference price for UBL but would like to get as much as possible out of the final deal.

Nevertheless, he made it clear that no buyer will be allowed to get UBL by depositing the depositors’ money. “The central bank’s rules are very clear in this behalf.”

The capital adequacy requirement of UBL has been completed to make the deal ready for the privatization. During the last 10 years, Rs30 billion had been injected into UBL, including Rs22 billion by the Nawaz Sharif government, he added.

After UBL, he said Habib Bank’s 26 per cent shares would be offloaded by December this year for which a lot of response had been shown by the local and foreign investors.

He told a reporter that there was no delay in the privatization of Pakistan State Oil, and that it was lined up for this year as well.

The minister said that so far no decision had been taken to privatize the Sui Northern Gas Pipeline Limited (SNGPL) by unbundling it on the pattern of Wapda. He said the Asian Development Bank was providing necessary technical support over the issue.

To a question, Mr Altaf said as per the government decision 90 per cent sale proceeds of the privatization were being spent on retiring debt, while 10 per cent were being used for poverty alleviation. “The whole system is transparent and everybody can check it,” he said, adding that annual expenditure of the Privatization Commission had also been reduced to Rs400 million.