|
|
|
Privatisation efforts began in earnest after the creation of the Privatisation Commission on January 22, 1991. Although the PC’s mandate was initially restricted to industrial transactions, by 1993 it had expanded to also include power, oil and gas, transport (aviation, railways, ports and shipping), telecommunications, and banking and insurance.
The Commission during three months period from July 2003 to October 4, 2003
has realized Rs. 533.149 million through sales of GOP shareholding in POL, ARL,
DG Khan Cement and 10% shares of Kurram Chemicals. By October 4, 2003, the
Government of Pakistan had completed or approved 133 transactions at gross
proceeds of Rs 101.802 billion. The sources of the proceeds have been shown in
the figure 1.
|
|
About 66% of the gross receipts was turned over to the Federal Government, 18% was returned to companies on whose behalf shares were sold, 6% was used for restructuring expenses associated largely with golden handshakes and rehabilitation, and 5% was used for PC’s privatisation-related expenditures (Figure 2).
|
|
While almost all the transactions were settled in local currency, about 58% of
the proceeds were 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, and United Bank Limited. The table
2 provides the number of transactions privatised and the Annex provides detail
of each transaction.
|
Table 2 : Number of privatised transactions |
|
|
|
(Rupees in
|
Million |
) |
||
|
|
1991 to Jun 2001 |
Jul 2001 to Jun 2002 |
Jul 2002 to October 4, 2003 |
To |
Date |
|||
|
Sector |
No. |
Amount
|
No. |
Amount
|
No. |
Amount
|
No. |
Amount |
|
Banking |
4 |
5,644 |
|
|
2 |
12,970 |
6 |
18,614 |
|
Capital Market Transaction |
1 |
563 |
2 |
737 |
8 |
8,950 |
11 |
10,250 |
|
Energy |
4 |
9,549 |
8 |
11,349 |
|
|
12 |
20,898 |
|
Telecom |
2 |
30,558 |
|
|
|
|
2 |
30,558 |
|
Automobile |
7 |
1,102 |
|
|
|
|
7 |
1,102 |
|
Cement |
11 |
7,790 |
|
|
|
|
11 |
7,790 |
|
Chemical / Fertilizer |
14 |
2,045 |
2 |
7,338 |
2 |
821 |
18 |
10,204 |
|
Engineering |
7 |
187 |
|
|
|
|
7 |
187 |
|
Ghee Mills |
19 |
646 |
2 |
122 |
|
|
21 |
768 |
|
Rice / Roti Plants |
23 |
326 |
|
|
|
|
23 |
326 |
|
Textile |
2 |
87 |
|
|
|
|
2 |
87 |
|
Newspapers |
5 |
270 |
|
|
|
|
5 |
270 |
|
Tourism |
3 |
594 |
|
|
|
|
3 |
594 |
|
Others |
4 |
44 |
1 |
110 |
|
|
5 |
154 |
|
Total |
106 |
59,405 |
15 |
19,656 |
12 |
22,741 |
133 |
101,802 |
