Plan to privatise Republic Motors may be shelved
Govt fails to recover company’s prime land from illegal occupants.
ISLAMABAD:
The government is considering dropping the plan to privatise a state-owned entity after failing to recover prime land from illegal occupants belonging to the business and influential class.
A senior official of the Privatisation Commission said the government had been unable to get vacated the prime land of Republic Motors, Lahore, from 62 illegal occupants and was considering removing the company from the privatisation list. He said the land was occupied by people from the influential class including the business community.
Earlier, the Privatisation Commission had invited Expressions of Interest (EOIs) from interested parties for the sale of land and buildings owned by Republic Motors and others located at Shahra-e-Quaid-e-Azam and the back portion facing Lawrence Road. However, owing to the dispute over possession of land, only one party deposited the earnest money and it too never returned.
“The land spread over 42 kanals is worth billions of rupees,” said National Assembly member Pervez Malik.
Secretary Privatisation Imtiaz Kazi said the Ministry of Industries and Production has sought de-listing of the entity from the privatisation list.
“Getting the land vacated from the illegal occupants is the job of the parent ministry (industries and production ministry) and if it is unable to do this, the Privatisation Commission cannot do anything,” said Privatisation Minister Ghous Bux Khan Mahar.
Roosevelt Hotel also not on active privatisation list
The secretary privatisation said President Asif Ali Zardari had decided in January 2009 to drop the plan for sale of Roosevelt Hotel, New York. He said the decision was taken after the real estate market slumped in the wake of global financial crisis and evaluators assessed the hotel price at only $400 million.
The Cabinet Committee on Privatisation approved the de-listing in March this year but left the final decision with the Cabinet Committee on Restructuring that has yet to take a decision.
The Privatisation Commission has also shelved the plan to sell the Pakistan Printing Corporation after the Capital Development Authority refused to allow commercial utilisation of the land attached to the civic body’s head office. The Printing Corporation is running into losses and cumulative losses have crossed Rs3.6 billion. The government is spending Rs25 million annually on administrative expenses of the company.
Published in The Express Tribune, May 26th, 2011.
The government is considering dropping the plan to privatise a state-owned entity after failing to recover prime land from illegal occupants belonging to the business and influential class.
A senior official of the Privatisation Commission said the government had been unable to get vacated the prime land of Republic Motors, Lahore, from 62 illegal occupants and was considering removing the company from the privatisation list. He said the land was occupied by people from the influential class including the business community.
Earlier, the Privatisation Commission had invited Expressions of Interest (EOIs) from interested parties for the sale of land and buildings owned by Republic Motors and others located at Shahra-e-Quaid-e-Azam and the back portion facing Lawrence Road. However, owing to the dispute over possession of land, only one party deposited the earnest money and it too never returned.
“The land spread over 42 kanals is worth billions of rupees,” said National Assembly member Pervez Malik.
Secretary Privatisation Imtiaz Kazi said the Ministry of Industries and Production has sought de-listing of the entity from the privatisation list.
“Getting the land vacated from the illegal occupants is the job of the parent ministry (industries and production ministry) and if it is unable to do this, the Privatisation Commission cannot do anything,” said Privatisation Minister Ghous Bux Khan Mahar.
Roosevelt Hotel also not on active privatisation list
The secretary privatisation said President Asif Ali Zardari had decided in January 2009 to drop the plan for sale of Roosevelt Hotel, New York. He said the decision was taken after the real estate market slumped in the wake of global financial crisis and evaluators assessed the hotel price at only $400 million.
The Cabinet Committee on Privatisation approved the de-listing in March this year but left the final decision with the Cabinet Committee on Restructuring that has yet to take a decision.
The Privatisation Commission has also shelved the plan to sell the Pakistan Printing Corporation after the Capital Development Authority refused to allow commercial utilisation of the land attached to the civic body’s head office. The Printing Corporation is running into losses and cumulative losses have crossed Rs3.6 billion. The government is spending Rs25 million annually on administrative expenses of the company.
Published in The Express Tribune, May 26th, 2011.