PRIVATISATION DIRECTLY DEALS WITH THE POVERTY ALLEVIATION- EMPLOYMENT GENERATION & DEBT RETIREMENT-says Dr. Hafeez Shaikh

Islamabad, February 27, 2004

The Privatisation activity in the country directly deals with the poverty alleviation, employment generation and debt retirement. In the first year of the present Government Privatisation Commission has broken all the records by undertaking privatisation transactions worth Rs.42 billion. The transactions included strategic sale of Habib Bank Limited, which was conducted in a transparent and professional manner. In addition, the emphasis was on the transfer of the benefits of privatisation to the general public through the Public Offerings of OGDCL and SSGC, which received an unprecedented and enthusiastic response. Dr. Abdul Hafeez Shaikh stated this while addressing the Privatisation Commission Board meeting chaired by him here today.

He said that the privatisation activity attracted fresh investment and created additional job opportunities through privatisation. We were very much confident while privatizing the national assets that such activities would bring impetus to economic growth and investment and the benefits of the privatisation would be directly transmitted to the people of Pakistan whether through the public offerings of the GoP shares in the public sector entities or through the strategic sale of our national assets. 

Dr. Hafeez Shaikh further stated that the private sector had the capability to improve the work force and to generate maxim profits out of the businesses. 

The PC Board directed that whole process of divestment of the shares of Public sector entities on domestic Stock Exchanges should be accelerated and the possibility of GDR in selected cases be examined in detail for making appropriate recommendations for approval of the Government. 

The PC Board was informed that Public Offering of PIA, PPL and KAPCO were under process.   The PC Board expressed its satisfaction over the privatisation status of KESC, which was now at an advance stage. Four parties are in the process of conducting due diligence in the data room. On the completion of due diligence, a pre-bid meeting was proposed to be held next month. 

The Board also decided that the Faletti's Hotel, Lahore's privatisation be processed essentially as a Hotel transaction.  The Board appreciated the divestment of the SSGC shares, which was over subscribed by 15 times with 258089 applications worth Rs. 13 billion including 243116 applications for 1000 shares. The meeting was attended by Dr. S. Javed Hussain Mian, MNA, Parliamentary Secretary for Privatisation, PC Board members, senior officials of Ministries of Petroleum & Natural Resources, Sports Tourism & Culture, Water & Power, Finance, SBP, SECP, PTCL and PC.