ISLAMABAD, Dec 13: The pace of privatization programme will be accelerated in more transparent way to convey good signals to the foreign and local investors.
This was stated by the Adviser to Prime Minister on Privatization and Investment, Dr Abdul Hafeez Shaikh, here on Friday during the Transaction Closing ceremonies for ICP Lot-B Mutual Funds and Bank Alfalah Limited.
The minister said the new government was fully committed to the privatization programme. “It would be our endeavour to embark upon the privatization programme with full thrust and speed to generate economic activity and employments by facilitating and promoting the private sector towards privatization process in a right way to the right people and at the right price”, he said.
He said that the proper pre-qualification process and right valuation for national assets would always remain the government’s prime concern.
Hafeez said that the privatization programme was a pro-poor programme as they would be the principal beneficiaries.
Later, while addressing to the officers and the consultants Dr Hafeez announced the targeted transactions for the first quarter of 2003, which included the GoP shares in Attock Oil Limited and Pakistan Oilfields Limited, ICP’s State Enterprise Mutual Funds, Faletti’s Hotel, Pak Arab Fertilizers Limited, NITL and Pakistan State Oil.
Most of these transactions are close to the bidding stage, while 6 per cent shares of POL have already been divested through stock exchanges.
Efforts, he pointed out, would also be made to include Hyatt Regency Hotel in the first quarter after the court’s stay order was vacated, while HBL, PTCL, OGDCL, some of the power generation and distribution units and KESC would be processed simultaneously and taken after the first quarter of 2003 for bidding, he detailed.
“We would also focus to develop an extended privatization programme for curtailing the losses in the public sector, building infrastructure and improving the quality of services”, he said.
Earlier, while chairing the Transaction Closing ceremonies regarding the formal consent agreement signing for ICP Lot-B Mutual Funds and the share purchase agreement for balanced 30 per cent shares of Bank Alfalah (former Habib Credit & Exchange Bank) Dr Hafeez Shaikh hoped that both the transactions conducted in most transparent and professional manner would further generate the interest of the private sector to participate in the other upcoming opportunities.
PC had received highest bid of Rs302.5 million for the management rights of Investment Corporation of Pakistan’s Lot-B Mutual Funds from PICIC in October this year. Disinvestment of Lot-B of ICP Mutual Funds and transfer of management rights to a quality investor is a corner stone transaction and will open up opportunities for the transfer of NITL transaction and State Enterprise Mutual Fund (SEMF) of the ICP.
PC had already successfully completed the transfer of management rights for Lot ‘A’ ICP Mutual Funds transaction. PC had also received the highest bid of Rs27.56 per share against the floor price of Rs26.56 per share for the remaining 30 per cent shares from Abu Dhabi Group (UAE). They had acquired Bank Alfalah in 1997 through an open bidding. Total sale proceeds for this transaction are Rs620.1 million.