CCOP approves VSS of PTCL

Islamabad, October 18, 2007

The Cabinet Committee on Privatisation which met here today under Chairmanship of Prime Minister Shaukat Aziz approved the Voluntary Separation Scheme (VSS) of PTCL, appreciated the Subscription Results of Habib Bank IPO and reviewed the schedule for future privatisations.

The secretary, IT & Telecom Division briefed the CCOP on the salient features of the VSS and informed that the scheme envisages to make the company more competitive, efficient and would benefit the low-paid employees. It will be offered to the employees by the end of October 2007 and the employees would be given two months time to express their voluntary option for the scheme. There will be no compulsion and the employees would be free to opt or not to opt for the scheme, the Secretary said.

The Prime Minister emphasised that the voluntary character of VSS of PTCL should be ensured in its implementation and the low paid employees should get the maximum benefit. The scheme must ensure non-discriminatory treatment to the employees who opt to avail this package, the Prime Minister said.

The CCOP was informed that the subscription results of HBL IPO have been very encouraging and the smaller investors have shown great interest in the IPO. The Prime Minister said that it reflected the confidence of the investors in the policies of the government, which are investment friendly. He thanked the public for active participation and support for the privatisation process launched by the present government to generate funds for the development of the country.

The Prime Minister said that the concept of privatisation does not necessarily mean to sell off the assets of the country. The philosophy behind privatisation is that the government should focus its attention on making people friendly and development oriented policies while the private sector should run the business on competitive terms so as to bring the country at par with the developed nations. The privatisation law, the Prime Minister said, has been promulgated to achieve this objective and 90 per cent proceeds of the privatisation are meant for debt retirement while 10 per cent proceeds go to poverty alleviation and development projects in the country.

The CCOP reviewed the update on privatisation and noted with satisfaction that the principles of transparency, competitiveness and open system adopted by the Privatisation Commission have paid dividends and restored confidence of the local and foreign investors in Pakistan 's economic policies.

The Secretary, Privatisation Commission informed the CCOP about the progress on projects under process for privatisation. He informed the CCOP that privatisation proceeds during the last financial year i.e. 2006-07 amounted to Rs.120 billion.

The Prime Minister directed the Privatisation Commission to adopt more innovative and proactive approach to cut down impediments and step up the privatisation process of the projects under process. Due diligence should be given to financial evaluation of the projects before bidding, the Prime Minister added.

Earlier, the meeting started with recitation from the Holy Quran by the Minister for IT and Telecom Division, Mr. Awais Ahmed Khan Leghari.