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A meeting of the Board of the Privatisation Commission held under the
chairmanship of Mr. Zahid Hamid Federal Minister for Privatisation &
Investment here today reviewed in details the progress achieved in the
privatisation of Pakistan State Oil (PSO), launching of Global Depository
Receipts (GDR) s of United Bank Limited (UBL), Initial Public Offering of
Habib Bank Limited (HBL), Heavy Electrical Complex (HEC), land/ assets of
Services International Hotel and Republic Motors and Hazara Phosphate &
Fertilizers Limited. The Board issued necessary directions for expediting all
these transactions within the current fiscal year.
Mr. Zahid Hamid Federal Minister for Privatisation & Investment informed the
Board that during the past ten months of the current fiscal year the total
foreign investment was a record US $ 6 billion, which was indicative of the
confidence of the foreign investors in the economic policies of the government
and its leadership. This very positive and favorable investor sentiment was
also evident from yesterday’s issue of the US $ 750 million ten year bond
which was oversubscribed 7 times and priced very favorably at 6.875 %. The PC
Board appreciated these highly significant and encouraging developments, which
would give further boost to the economy. These were the fruits of the
government’s remarkably successful economic reforms based on privatisation,
liberalization, deregulation, transparency, good governance and continuity and
consistency of policies.
The Board also took note of the misleading reports regarding the privatisation
of National Investment Trust Limited (NITL) and observed that according to the
approved transaction structure, which was reopened in November 2005 and was on
going since June 2003, 47.75% of total NITL units (i.e. the units not covered
by the Letters of Comfort issued by the Ministry of Finance) would be divided
into three (3) equal parts and management rights of each part would be sold to
three (3) different parties at the highest bid price. Hence no one party could
purchase management rights to more than 16% holding and the apprehensions of
manipulation were therefore misplaced. Moreover in view of large number of
parties, which had expressed interest in the transaction, the PC expected very
competitive bidding.
Members of the Board of the Privatisation Commission, senior officials of the
respective Ministries and departments attended the meeting.