PC To Off Load GOP Shares In OGDCL-PTCL-NBP-PIAC-SSGC Committee Formed To Finalise Road Map
 

Islamabad, April 8, 2003

After taking the oath of the office of Federal Minister for Privatisation & Investment, Senator Dr. Abdul Hafeez Shaikh chaired the second session of the newly constituted Privatisation Commission Board here today.

The meeting decided to further accelerate the pace of the privatisation of public sector entities and to move forward with the ongoing process of strategic sale of Pakistan State Oil (PSO), Pakistan Telecommunication Company Limited (PTCL), Oil & Gas Development Company Limited (OGDCL), Habib Bank Limited (HBL) and Karachi Electric Supply Corporation (KESC). The Board approved in principle the Initial Public Offering of GoP shares in OGDCL. It was also decided to undertake an additional offer of GoP shares in National Bank of Pakistan (NBP), PTCL, Pakistan International Airline Company (PIAC) and Sui Southern Gas Company (SSGC). The meeting constituted a Committee, which will make recommendations at the earliest for approval of the Board and subsequently the CCOP regarding the quantum of shares to be divested, the mode, the timing and sequencing of these divestments. The Committee will also make recommendations regarding other offerings in public sector entities.

The Committee was authorized by the Board to also make suggestions for improvement in the existing procedure followed by the Privatisation Commission in this regard.  The PC Board emphasized that privatisation through Stock market will not only broaden and deepen the market base, it will also provide an opportunity to the common man to get the benefits of privatisation directly, which will be done through a transparent process. The present Government has realised a significant amount of about Rupees three billion in a short span of three months through the divestment of GoP shares through Stock market operations, which is very encouraging.

A Committee was also formed to finalise the Financial Advisory Contract with the highest ranked party for PESCO privatisation transaction. The Board was apprised and briefed about the status and progress of KESC, FESCO and JPC transactions and gave its approval to the transaction structures for FESCO and JPC. The meeting was attended by the members of the Board including Mr. Moin M. Fudda, , Mr. Iftikhar ul Haq, Mr. Mahmood Nawaz Shah, Mr. Farid Rehman, Mr. Kamal-ud-Din Ahmed, Mr. Shakiel Z. Lari, Pir Saad Ahsanuddin, the Secretary PC Mr. Ahmad Waqar as its Secretary/ Member and senior officials of the Ministries/ Divisions and Organisations concerned.