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Privatisation Commission  Refutes Report in Frontier Post on Privatisation
 

A spokesperson for the Privatisation Commission responded to the report carried by the Frontier Post, Peshawar on 11-8-2001, attributed to an analyst of the First Capital Research Group, stating that the "government failed on the privatisation front". The spokesperson termed the report as misinformed and misleading.

Early in its tenure, the Government realised that the reasons for slow progress on privatisation during the last administration lay in an inhospitable enabling environment, legal challenges to privatisation, public opposition to privatisation, and lack of adequate regulatory frameworks for the privatisation of utilities. Recognising that there was little to be gained in taking transactions to market prematurely, during its first year and a half of its tenure the Government focused on:
 

1

Improving the macroeconomic climate

2

Resolving investor disputes

3

Promulgating a privatisation ordinance that provides legal cover to challenges, comforts investors, assures transparency in sale process, and mandates distribution of proceeds

4

Establishing or strengthening regulatory frameworks

5

Carrying out sectoral reforms related to deregulation and pricing

6

Hiring top class financial advisors

7

Improving the public's understanding of privatisation rationale and process via seminars, interviews, publications, and a revamped website

With strong progress made on all of the fronts above, the Government is now poised to take over a dozen transactions to the market before the end of 2001, including major transactions such as PTCL, UBL, working interests in 9 oil and gas fields, and NITL.

 

In addition, preparation is well advanced for other larger transactions including OGDC, PSO, and KESC, as well for many smaller transactions, all of which are expected to be completed during the next 12 months. There is no intention to wait for the implementation of the IMF's PRGF as there is sufficient confidence in the country's macroeconomic performance. This is also evidenced by the large number of national and international Expressions of Interest (EOIs) that have been received for the privatisation of units scheduled for 2001. For example, 21 EOIs were received for UBL, 11 for PTCL, 15 for working interests in the 9 oil and gas fields, and 11 for NITL.

The Privatisation Commission was restructured early in 2000 to make it a leaner and more agile institution, while the appointment of the Chairman as Minister for Privatisation has also enhanced the stature of privatisation and facilitated the privatisation process. The Privatisation Commission is confident of its ability to successfully complete the bulk of the transactions in its programme.