The government has finalised plans to privatise and sell shares of eight state-owned enterprises during the current fiscal year, said Privatisation Minister Ghaus Bakhsh Mahar on Tuesday.
Talking to the media, he said shares of Kot Addu Power Company (Kapco), Habib Bank (HBL), Pakistan Petroleum (PPL) and National Bank would be sold through domestic stock markets whereas management control of Heavy Electrical Complex (HEC), National Power Construction Company, Faisalabad Electric Supply Company (Fesco) and SME Bank would be handed over to the private sector.
Besides these, exchangeable bonds of Oil and Gas Development Company (OGDCL) will be floated in the international market.
Earlier, the government had planned to float the bonds worth $500 to $650 million before June 30 to utilise the proceeds for budget financing, but it failed as the international market was not ripe for the bond issue at that time. The global market has been shaky for some time because of the Greek debt crisis and weak US economy.
“Privatisation will be done with the consent of company shareholders and transparent process will be ensured,” he added. In the budget for financial year 2011-12, the government has allocated Rs72.7 million for running the affairs of the privatisation ministry. The privatisation target for the ministry last year was Rs19 billion, but it could not privatise any company. A year earlier, the ministry could generate only Rs1.3 billion against the target of Rs25 billion.
Published in The Express Tribune, July 13th, 2011.
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