13 state properties auctioned for Rs179.35m

Minister says transactions carried out in transparent manner

LAHORE:

The federal government has auctioned 13 state properties in the provincial capital for Rs179.35 million on Wednesday.

The second phase of the auction of federal government-owned properties was held in Lahore on Wednesday. Federal Minister for Privatisation Mohammed Mian Soomro was the chief guest at the auction, which included 13 state properties located in different areas of the provincial metropolis.

These include WAPDA owned commercial property located at Nicolson Road Lahore, three shops located at M M Alam Road and nine apartments owned by Earthquake Reconstruction and Rehabilitation Authority (ERRA) located at Ferozepur Road, Lahore.

Against the reserve price of Rs175.05 million, Privatisation Commission successfully auctioned all 13 assets for Rs179.354 million. The privatisation proceeds generated from these transactions will primarily be used for the retirement of the national debt and also for the poverty alleviation.

Speaking to media after the auction, Soomro said all privatisation transactions were being carried out in a transparent manner as per legal framework of the privatisation. There are various steps and different forums that approve the reserve prices and transaction structure after comprehensive due diligence.

He said a comprehensive plan was underway for the revival of economy and privatisation is one of its core components. He was of the view that privatisation was an important mode of non-tax revenue proceeds for the economy besides long term benefits.

Responding to a question about PIA’s New York property, Roosevelt Hotel, the minister said it was not being privatised, rather a lease option was under consideration and stakeholders were doing deliberations.

He highlighted that there were various entities in energy sector which were being privatised or their shares were being divested. Regarding the privatisation of DISCOs, he informed two DISCOs are being considered for privatisation for which final decision will be taken with necessary restructuring done prior to offering for privatisation.

Earlier in a similar auction event this week, the commission had auctioned five government properties for Rs156.45 million, as against the initial target of Rs140.525 million. The bidding was conducted by the financial advisers in the presence of the media and was duly monitored by the auction committee comprising senior officials of the ministry.

 

Published in The Express Tribune, September 10^th, 2020.