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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.