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The Privatisation Program in Pakistan offers tremendous opportunities for
potential investors in power, oil& gas, telecom, banking and financial,
infrastructure and industries sectors. Mr. Salim Gul Shaikh Federal Secretary
Ministry of Privatisation stated this while addressing the 'First meeting of
Heads of Privatisation Administrations of ECO Member States' being held in
Tehran from July 3-6,2004, says a message received from Tehran here today.
Highlighting Pakistan's privatisation policies, Mr. Salim Gul said, the
government of Pakistan is firmly committed to the deregulation and
privatisation of oil & gas, power, banking & Finance, telecom and industries
sectors. Pakistan he said, has embarked upon sector reforms, which include the
establishment of requisite legislative and regulatory framework, tariff
rationalization and deregulation wherever possible. It has also initiated the
privatisation program wherein strategic investors are sought for the
major transactions. The program offers an immediate access to the markets in
Pakistan. The privatisation process in Pakistan is essentially a one-window
operation with the Privatisation Commission as the primary interface with all
the potential investors. The actual implementation of the process is carried
out in a fair and transparent manner while providing a level playing field for
both domestic and foreign investors, he said.
He further stated, Pakistan has achieved strong and robust progress in all
sectors of the economy over the years through privatisation program since its
inception in 1991. The Government of Pakistan is conscious of the need to make
privatisation in the country both attractive and rewarding for the potential
investors, recognizing the fact that private sector is the engine of economic
growth, he added.
Mr. Salim Gul said that Pakistan's privatisation program is predicted on
the principle of reducing the Government's direct participation in commercial
activities. The Government's role is envisaged to be limited to providing a
conducive environment for efficient functioning and management of the economy
and to ensure equity and economic justice. This reinforces the need for
regulation in strategic areas and the design of appropriate policies in order
to balance the interests of consumers and the taxpayers as also to ensure a
level playing field so that the ensuing benefits are distributed in an
equitable manner, he said.
Mr Salim Gul added, within the overall goal of enhancing the quality and
quantity ofgoods and services, the program aims at fostering competition in
different sectors of the economy to the best advantage of investors, consumers
and the government; attract new management, capital and technology to improve
the efficiency and quality of services; reduce fiscal burden of the government
through elimination of fiscal support to loss making enterprises; realize
proceeds through the sale of State Owned Enterprises, so that national debt
could be reduced and safeguard the interests of the consumers, the
investors and the government through the establishment of independent and
autonomous regulatory bodies in the country.
Referring to the continuing improvement in the macro economic outlook of
Pakistan, Mr. Salim Gul Shaikh said, the pace of privatisation picked up
momentum in the last four years in spite various shocks during this period to
the economy like 9/11 incident, and events in the neighborhood. The
success of Pakistan Government's endeavor isevident from the fact that
Privatisation Commission undertook 22 transactions amounting to Rs.35 billion
during the period, November 1999 to November 2002 and during the period,
November 2002 to March 2004, it undertook 15 transactions to generate
record proceeds of Rs.44 billion that included Pakistan's largest strategic
sale of Habib Bank Limited, Pakistan's largest Commercial Bank.
He further said, taking advantage of the buoyant Stock Exchange where
Karachi Stock Exchange has now crossed the 5500 Index, the Privatisation
Commission has succeeded in divesting Government shareholdings in a number of
units through Initial and Secondary Public Offerings of the companies in the
energy, transportation and banking sectors with further divestments
planned for power generation as well as other sectors. These divestments
have provided a fillip to the local capital markets by increasing
capitalization and broadening the base of ownership. These have also
generated a sense of ownership in the common man for the privatisation
process since it allows the common man to participate and benefit from
privatisation activity, which is devised to give preference to the smallest
applicants through such Public Offerings, he added.
He also thanked the Government of Islamic Republic of Iran for having taken
the initiative to host the First meeting of the Heads of Privatisation
Administrations of the ECO Member States and expressed the hope that this
process would go a long way in laying the foundation for a long term
relationship among the privatisation organizations of ECO Member Countries.