PRIVATISATION PROCESS SHOWS UPWARD TREND-SAYS HAFEEZ SHAIKH

Islamabad, May 06, 2004

Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation & Investment said that the privatisation of United Bank Limited after the transfer of management control to the private sector have started yielding results for the national exchequer after the announcement of dividend by the new management and for the first time since nationalization in 1974 and just over a year following privatisation, UBL declared a dividend of Rs.1,165,500,000/- @ Rs.2.25 per share. The government will receive Rs.571,095,000/= for its 49 % shareholding in the bank. He stated this in PTV’s program ‘News Morning’ here today.

The Minister said that the privatisation was a global trend and a pro-country process, which enjoyed consensus by all the successive governments. He informed that so far an amount of Rs.135 billion has been realized through this process. During the first 10 years privatisation process received Rs. 58. 47 billion and during the three years of General Pervez Musharraf the proceeds stood at Rs.35. 3 billion and the present Government got Rs. 41. 3 billion over a period of 18 months, which shows an upward trend and indicates increase in the momentum.

He said that the privatisation process was also aimed at reviving the dead units like Associated Cement Rohri, Khoinoor Oil Mills, Hyatt Regency Karachi Hotel Project and Falleti’s Hotel, Lahore. About Rs. 87 billion were spent for the restructuring of Karachi Electric Supply Corporation (KESC) over a period of time and currently it was making a loss of around Rs.15 billion per year, the banks have lost billions of ruppes whereas this money could have been utilized for providing basic health, sanitation and water supply facilities to the general public, he added.

He listed the successes achieved through the Initial Public Offerings of GoP’s shares in Oil & Gas Development Company Limited and the secondary Public Offering of Sui Southern Gas Company shares, which received all time record response from the smaller applicants. Referring to the international conference on Investment Opportunities in Balochistan, the Minister said that we have to narrate ourselves the story of Pakistan to create an atmosphere where provincial, district and local governments could write a new chapter. President General Pervez Musharraf has become a bridge for the promotion of investment in the country,which was essential for the economic growth, he added.

The former Federal Minister for Privatisation Mr. Altaf M. Saleem said that the Public Sector entities were making a loss of Rs.100 billion every year while our Tax collection was Rs. 300 billion, foreign reserves were US $ 600 million and the Index was 800 and with the improvement in fundamentals the reserves and the Index has reached all time higher while the pace of privatisation was moving forward in right direction, which should be sustained. He said that it was not advisable to sell the national assets in haste and no one can think of selling them at a throw away price. During the three years of Musharraf government the privatisation was given a structure through the promulgation of Privatisation Law. Now the framework was ready and it would gradually benefit the people and the country, he added.

The Chairman Karachi Stock Exchange Mr. Arif Habib said the public offerings initiated by the Privatisation Commission were receiving good response from the general public. NBP shares offered at Rs.10/=, OGDCL shares at Rs.32/= and SSGC shares at Rs.26/= have now touched Rs.72/=, Rs.68/= and Rs.34/= respectively and the government was getting financial reserves through this process, he stated and added that exercising patience for the strategic sale of Public sector entities would result in good price and quality players.