NA BODY APPRECIATES PRIVATISATION PROCESS OF HBL

Islamabad, August 12, 2004

A meeting of the Standing Committee on Privatisation held here today under  the chairmanship of Syed Muhammad Asghar Shah MNA appreciated the privatisation process of Habib Bank Limited and termed it as transparent and in the best interest of the country.

Syed Muhammad Asghar Shah agreed with the remarks of PML (N) MNA Khawaja Muhammad Asif and said there was need to make the privatisation process of public sector entities understandable to the public and all the stakeholders in order to avoid the misconceptions created through incomplete reports. He said that while privatizing the State entities the valuation process and the interests of the workers should be well taken care. Pakistan has vast potential for investment and investment efforts should not be politicized as it was a national cause, however, BOI should further simplify the procedures and take appropriate measures to remove the impediments to attract local and foreign investors, he added.

Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation & Investment while replying to the points raised by the members of the Committee informed that Habib Bank Limited had not given any dividends for the last ten years or so and at the same time successive governments had to inject large amount to keep the bank running. He clarified that the proceeds received for HBL were only for the sale of 51 % shares of the bank while government still holds 49 % shares in the bank. Over the next two years the country would receive FDI to the tune of US $ 401 million through this sale, he said.

The Minister dispelled the impression regarding decline in investment and said that during the last two year investment worth US $ 1.75 billion was attracted while this year it has been recorded 19 % increase as compare to the previous year and has touched the figure of US $ 950 million. BOI Chairman Waseem Haqqie while giving a detailed presentation on the BOI mandate, structure, services and investment climate he pointed out that mandate now included promotion, encouragement and facilitation to domestic and foreign investors.  We have chalked out a strategy to focus the target  sector and countries to attract investment. Things are moving in the right directions.  He further said that Pakistan offers tremendous opportunities in various sectors including oil & gas.  The oil sector has been explored only 3% of the total reserves while gas 14%. The perception of Pakistan is improving and BOI has chalked out an aggressive image-building plan.

Earlier, Mr. Abdul Ahad Effendi, Senior Consultant Banking PC gave a detailed presentation regarding the privatisation process of Habib Bank Limited and visual recording of the bidding process of the bank was also shown to the members.

The meeting decided to have similar presentation on the restructuring of ABL by the State Bank of Pakistan in its next meeting.