Progress to date
Privatisation efforts began in earnest after the creation of Privatisation
Commission on January 22, 1991. Although the PC mandate initially restricted
to industrial transactions, by 1993 it had expanded to also include Power, Oil
& Gas, Transport (aviation, railways, ports and shipping), Telecommunications
and Banking and Insurance. During January 1991 to June 2006 the Commission
completed 158 transactions for Rs 353.446 billion.
The Commission during period 2006-2007 has successfully completed
privatisation of 7 transactions amounting to Rs. 104.315 billion. This
includes sale of OGDCL GDR, UBL GDR, OGDCL SPO, Pak American Fertilizers,
Javedan Cement Limited, Lyallpur Chemical & Fertilizers and Lasbella Textile
Mills. During the period from July to December 2007 3.26% UBL shares have been
sold through GDR for Rs. 5.159 billion and 7.5% shares of HBL have been sold
through IPO for Rs. 12.161 billion. To date, Government of Pakistan had
completed or approved 166 transactions at gross sale price of Rs 475.081
billion. The sources of the proceeds have been shown in the figure 1.
About 67% of
the proceeds received were transferred to the Federal Government, 26% was
returned to legal entities whose shares were sold, 2% was used for
restructuring expenses associated largely with golden handshakes and
rehabilitation, and 2% was used for PC’s privatisation-related expenditures
(Figure 2).
While
almost all the transactions were settled in local currency, about 66.4% of the
proceeds have been received in foreign exchange from transactions pertaining
to 2nd tranche of PTCL vouchers, Kot Addu Power Plant (KAPCO), Six Oil & Gas
Concessions, Habib Credit & Exchange Bank, United Bank Limited, Habib Bank
Limited, KESC, 26% shares of PTCL, OGDCL GDR and UBL GDR. The table 2 provides
the number of transactions privatised and the Annex provides detail of each
transaction.
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Table 2: Number of
privatized transactions
|
SECTOR |
From 1991 to Jun 06 |
From Jul 06 to Jun
07 |
From Jul 07 to Dec 07 |
|
Total |
|
|
No. |
Amount |
No. |
Amount |
No. |
Amount |
No. |
Amount |
|
Banking |
7 |
41,023
|
|
|
|
|
7 |
41,023
|
|
Capital Market
Transaction |
18 |
32,190
|
3 |
83,614
|
1 |
17,320 |
22 |
133,124 |
|
Energy |
14 |
51,756
|
|
|
|
|
14 |
51,756 |
|
Telecom |
4 |
187,360
|
|
|
|
|
4 |
187,360
|
|
Automobile |
7 |
1,102
|
|
|
|
|
7 |
1,102 |
|
Cement |
16 |
11,862
|
1 |
4,316
|
|
|
17 |
16,178
|
|
Chemical / Fertilizer |
20 |
24,353
|
2 |
16,229 |
|
|
22 |
40,582
|
|
Engineering |
7 |
183
|
|
|
|
|
7 |
183 |
|
Ghee Mills |
24 |
843
|
|
|
|
|
24 |
843 |
|
Rice / Roti Plants |
23 |
324 |
|
|
|
|
23 |
324 |
|
Textile |
3 |
215 |
1 |
156 |
|
|
4 |
371 |
|
Newspapers |
5 |
271 |
|
|
|
|
5 |
271 |
|
Tourism |
4 |
1,805 |
|
|
|
|
4 |
1,805 |
|
Others |
6 |
159 |
|
|
|
|
6 |
159 |
|
Total |
158 |
353,446 |
7 |
104,315 |
1 |
17,320 |
166 |
475,081 |
|
Recent Progress
During the period from October 1999 to December 2007 the Commission
has privatized 64 transactions for Rs. 416.2 billion. Some of the major
transactions, including capital market transactions completed are:
-
51% shares of GOP in UBL for Rs. 12.350
billion.
-
51% of GOP shares in HBL for Rs. 22.409
billion
-
Divestment of 30% shares of Bank Al-Falah
for Rs. 620 million.
-
GOP shares in POL, ARL and D.G Khan Cement
for Rs. 6.240 billion.
-
GOP shares in MCB lots for Rs. 1.591 billion
-
Management Rights of ICP Lot A, B and SEMF
for Rs. 1.265 billion
-
23.2% NBP shares to general public for Rs.
1.759 billion.
-
10% shares of SSGC thru SPO for Rs. 1.734
billion to general public.
-
5.8% shares of PIA thru SPO for Rs. 1.215
billion to general public.
-
15% shares of PPL thru IPO for Rs. 5.633
billion to general public.
-
20% shares of KAPCO thru IPO for Rs. 4.815
billion to general public.
-
5% OGDCL shares thru IPO for Rs. 6.851
billion to general public.
-
9.5% OGDCL shares thru GDR & local
institutions for Rs. 46.963 billion
-
2.5% OGDCL shares SPO for Rs. 2.360 billion
to general public.
-
4.2% UBL shares thru IPO for Rs.1.087
billion to general public.
-
25% UBL shares thru GDR & local institutions
for Rs. 39.450 billion
-
7.5% HBL shares through IPO for Rs. 12.161
billion to general public.
-
26% shares of PTCL for Rs. 156.328 billion
-
Sale of Carrier Telephone Industries for Rs.
500.0 million
-
73% GOP share holding in KESC for Rs. 15.859
billion
-
GOP Working Interest in six concessions for
Rs. 7.816 billion
-
SSGC/SNGP LPG Business for Rs. 0.511 billion
-
51% shares of National Refinery Ltd for Rs.
16.415 billion
-
100% shares of Pak Saudi Fertilizers Ltd.,
for Rs. 8.150 billion
-
94.8% GOP shares in Pak Arab Fertilizers Rs.
14.125 billion
-
100% GOP shares in Pak American Fertilizers
Rs. 15.949 billion
-
Sale of Lyallpur Chemical & Fertilizers for
Rs.0. 282 billion
-
Sale of Mustehkam Cement Limited for Rs.
3.205 billion
-
Sale of AC Rohri Cement for Rs. 0.255
billion.
-
Sale of Thatta Cement for Rs. 0.793 billion.
-
Sale of Javedan Cement Limited for Rs. 4.316
billion.
-
Sale of the Falleti’s Hotel, Lahore for Rs.
1.211 billion.
-
Sale of Lasbella Textile Mills for Rs. 0.156
billion.
-
Bolan Textile Mills for Rs. 0.128 billion.
-
Sale of Al Haroon building for Rs. 0.100
billion
-
Sale of International Advertising (Pvt)
Limited for Rs. 5.117 million
