MOMENTUM OF PRIVATISATION PROCESS TO ACCELERATE IN THE NATIONAL INTEREST- Zahid Hamid

Islamabad, August 10, 2006

Every effort will be made to accelerate the momentum of privatisation process of public sector entities in the overall national interest in accordance with privatisation law and the program approved by the Council of Common Interest (CCI). Mr. Zahid Hamid Federal Minister for Privatisation & Investment stated this while addressing the meeting of the Board of Privatisation Commission here today.

He said that the basic concept of privatisation was to reduce direct government involvement in running businesses and to associate professional private sector for increasing efficiency, production, revenues and fresh investments and reducing government subsidies in the public sector entities, by following an open, fair and transparent process.

Referring to the detailed judgment in case of Pakistan Steel Mills Corporation (PSMC), the Minister said that the government had already implemented the directions of the apex court by making the Council of Common Interest (CCI) functional within the period of six weeks stipulated in the short order. In its first meeting on August 2, 2006 the reconstituted Council had reaffirmed the approval obtained in 1997 for the privatisation of PSMC. The PSMC privatisation process would be started de novo, he added. The Minister pointed out that the Supreme Court had also upheld the Privatisation Commission Ordinance 2000 not to be ultra wire the constitution which means that the PC would be able to vigorously pursue the approved privatisation program in accordance with the rules and regulations of course keeping in view the observations of the Supreme Court of Pakistan.

The PC Board constituted a committee for formulating its recommendations for the pre-qualification of the parties for Heavy Mechanical Complex (HMC) for which 19 Expression of Interest had been received. The Committee includes two PC Board members and each member from Ministries of Finance and Industries, Production & Special initiatives.

The PC Board also recommended to the Cabinet Committee on Privatisation (CCOP) approval of the highest bid of Rs.156 million received for the sale of the machinery of Lasbella Textile Mills.

The PC Board reviewed the status and progress of on going and upcoming transactions and directed that necessary steps be taken for their expeditious completion in an open fair and transparent manner after completing all prescribed legal formalities.

The PC Board members and the senior officials of the respective ministries and departments were present during the meeting.