Finance bill includes Rs100b as proceeds from privatisation process
PC eyes disinvesting Heavy Electrical Complex (HEC) and two RLNG plants in second quarter of this fiscal
A Reuters file image.
ISLAMABAD:
The finance bill for the next fiscal year has included Rs100 billion as proceeds from the privatisation process as part of the “Non-Tax Revenue Receipts”.
A meeting of the Privatisation Commission (PC) chaired by federal minister Mohammadmian Soomro was informed that the commission was working on reforms to introduce a system which could bring transparency, uniformity and consistency in the transaction management.
The participants of the meeting were told that significant progress is being made on various entities in the active privatisation list and that the PC is fully committed towards timely achieving the target.
It was further said that the process of privatising certain organisations was in the final phase, likewise, the procurement procedure for the appointment of financial advisers was also at an advanced stage.
As per the latest implementation plan prepared by the Privatisation Division, it is expected that transactions for privatising Heavy Electrical Complex (HEC), both RLNG Plants: Haveli Bahadar Shah and Balloki is likely to be completed in second quarter of the current financial year.
Financial advisers for Nandipur Power Plant have been hired and their due diligence is in progress and likely to be completed during the next fiscal year.
Moreover, Services Int’l Hotel (SIH), Jinnah Convention Center (JCC), SME, First Women Bank Limited (FWBL) and House Building Finance Company Limited (HBFC) are scheduled for the next fiscal year for completion.
For SME, qualified bidders have been notified to participate in buyer side due diligence leading to bidding process.
The session was told that the revival of Pakistan Steel Mills and to turn it into a profitable entity was one of the important agendas of the current government and Ministry of Privatisation.
In this regard another meeting was held which was attended by the PC board member and all relevant stakeholders including Ministry of Industries and Production, Pakistan Steel Mills Board chairman, project director, financial advisory consortium and director general, Privatisation Commission and other members of the transaction committee.
The transaction committee discussed the revised transaction structure for the revival of Pakistan Steel Mills and directed the financial advisory consortium to further fine tune proposals.
Another session of the transaction committee has been scheduled for Tuesday (tomorrow ) to finalise the transaction structure.
The recommendations of the committee will be presented to the PC board and Cabinet Committee on Privatisation for necessary approvals.
Conducive economic and market conditions will also be closely evaluated in order to ensure maximum privatisation proceeds for the federal government from these transactions.
Moreover, policy and legal reforms will also be an important landmark for the upcoming fiscal year 2020-21.
Meanwhile, a meeting of key stakeholders on the issue of receivable and payables by K-Electric was also held at the Privatisation Commission.
The meeting was chaired by privatisation minister and attended by senior officials from Power Division, Finance Division, CPPA, NTDCL and PC.
The representatives of Sindh government, SSGC and K-Electric participated in the meeting through video link.
The session deliberated on finalisation of arbitration agreement to settle the K-Electric receivables and payables from various public sector entities.
Many important aspects of the arbitration agreement were agreed by the stakeholders, while for the unsettled ones, it was decided to have a follow-up meeting next week.
The finance bill for the next fiscal year has included Rs100 billion as proceeds from the privatisation process as part of the “Non-Tax Revenue Receipts”.
A meeting of the Privatisation Commission (PC) chaired by federal minister Mohammadmian Soomro was informed that the commission was working on reforms to introduce a system which could bring transparency, uniformity and consistency in the transaction management.
The participants of the meeting were told that significant progress is being made on various entities in the active privatisation list and that the PC is fully committed towards timely achieving the target.
It was further said that the process of privatising certain organisations was in the final phase, likewise, the procurement procedure for the appointment of financial advisers was also at an advanced stage.
As per the latest implementation plan prepared by the Privatisation Division, it is expected that transactions for privatising Heavy Electrical Complex (HEC), both RLNG Plants: Haveli Bahadar Shah and Balloki is likely to be completed in second quarter of the current financial year.
Financial advisers for Nandipur Power Plant have been hired and their due diligence is in progress and likely to be completed during the next fiscal year.
Moreover, Services Int’l Hotel (SIH), Jinnah Convention Center (JCC), SME, First Women Bank Limited (FWBL) and House Building Finance Company Limited (HBFC) are scheduled for the next fiscal year for completion.
For SME, qualified bidders have been notified to participate in buyer side due diligence leading to bidding process.
The session was told that the revival of Pakistan Steel Mills and to turn it into a profitable entity was one of the important agendas of the current government and Ministry of Privatisation.
In this regard another meeting was held which was attended by the PC board member and all relevant stakeholders including Ministry of Industries and Production, Pakistan Steel Mills Board chairman, project director, financial advisory consortium and director general, Privatisation Commission and other members of the transaction committee.
The transaction committee discussed the revised transaction structure for the revival of Pakistan Steel Mills and directed the financial advisory consortium to further fine tune proposals.
Another session of the transaction committee has been scheduled for Tuesday (tomorrow ) to finalise the transaction structure.
The recommendations of the committee will be presented to the PC board and Cabinet Committee on Privatisation for necessary approvals.
Conducive economic and market conditions will also be closely evaluated in order to ensure maximum privatisation proceeds for the federal government from these transactions.
Moreover, policy and legal reforms will also be an important landmark for the upcoming fiscal year 2020-21.
Meanwhile, a meeting of key stakeholders on the issue of receivable and payables by K-Electric was also held at the Privatisation Commission.
The meeting was chaired by privatisation minister and attended by senior officials from Power Division, Finance Division, CPPA, NTDCL and PC.
The representatives of Sindh government, SSGC and K-Electric participated in the meeting through video link.
The session deliberated on finalisation of arbitration agreement to settle the K-Electric receivables and payables from various public sector entities.
Many important aspects of the arbitration agreement were agreed by the stakeholders, while for the unsettled ones, it was decided to have a follow-up meeting next week.