LAUNCHING OF 7.75 % OGDCL CONVERTIBLE BONDS IN THE OFFING-Says Senator Waqar Ahmed Khan federal Minister for Privatisation INTERACTION

Islamabad, March 12, 2010

 
The Government is working on the launching of convertible bond at about 7.75 percent for Oil and Gas Development Corporation Limited (OGDCL). The Federal Minister for Privatisation Senator Waqar Ahmed Khan said during an informal chat with the media persons in his chambers today.

He said that Foreign and strategic investors were eager to invest in Pakistan due to its investment friendly policies, opportunities, consistency of economic policies and political stability.

The Council of the Common Interest (CCI) has given approval for privatisation of 58 state-owned enterprises. The Minister said that through privatisation process government intended to improve the efficiency and performance of the State owned entities for getting optimal production and to assess their true potential so that they could contribute to the national exchequer instead of causing a loss of billions of rupees to the national kitty. “We want to make these entities profitable assets of the country for the relief of the people”, he remarked.

Senator Waqar said ‘We want to develop these state owned entities by improving their performance through restructuring and value addition for the benefit of the country. “We want to realize maximum potentials of the state-owned enterprises (SOE) by enhancing their cash value through value addition, besides enhancing their efficiency and competitiveness for getting higher process in the process of privatisation for the benefit of the country”.


The Minister for Privatisation said that the government has already decided the restructuring of the institutions including PIA, Pakistan Railways, Pakistan Steel Mills and PEPCO, and suggested for transparent formation of boards to restructure the loss incurring institutions with the induction of professionals from the private sector.

He said that experienced, efficient and competent Chief Financial Officers (CFOs) and Chief Operating Officers (COOs) would be appointed on merit in these institutions.
The CFOs and COOs shouldn’t be political appointees and they should be based on merit to run the boards in a transparent manner,” he added.

Senator Waqar said that President and Prime Minister were taking keen interest in the welfare of the workers of these state owned entities.

The Minister for Privatisation highlighting the launching of pro-worker Benazir Employees Stock Option Scheme (BESOS) said that the scheme was historic and would usher a new era of workers revolution who were being given free of cost 12 % of the GoP shares in the SOEs and the entities already privatized. The scheme is not limited only to the non-privatized entities as it also includes all the privatized entities having GoP shares.The Minister added that Under BESOS the employees of various SOEs have been given shares certificates (12 % of GOP shares). He added this scheme would benefit the workers across the country.The Minister said that President Asif Ali Zardari and the Prime Minister Syed Yusuf Raza Gilani attach great importance to the scheme, which ensures empowerment of the workers who have devoted their sweat and blood for the development and progress of their respective entities.