Of the twelve capital market transactions including issuance of exchangeable bonds in the international market backed by the Oil and Gas Development Company Limited shares, not even a single transaction has come through. The Cabinet Committee on Privatisation (CCOP), headed by Finance Minister Dr Abdul Hafeez Shaikh, had approved two-year capital markets roadmap in March 2011.
The Privatisation Commission’s board met on Wednesday under the chairmanship of Federal Minister for Privatisation Ghaous Bux Khan Maher and reviewed the situation just a day ahead of scheduled meeting of the CCOP.
“While discussing the Capital Market Transaction Roadmap, the board decided that capital market related transactions should be expedited as domestic bourses have recovered,” stated an official handout of the PC. The board also constituted a sub-committee to oversee the progress as per timelines, handout added.
Last year, the government had planned to raise at least $500 million by offloading 10 per cent shares of state-owned Oil and Gas Development Company. The government had also conducted road shows but the transaction managers advised the authorities to delay transactions due to the debt and financial crisis in the United States and European Union.
An official of the PC said that the government was still sticking to the wait-and-see policy regarding the OGDCL transaction.
In addition to that, in March 2011, the CCOP had also approved nine transactions which would have raked in an estimated amount of $330 million by offering shares of state-owned companies in the local market. Furthermore, the CCOP had also cleared Pak-Arab Refinery Company and Government Holding Company for initial public offerings but no decision was made on the number of shares to be offloaded.
An official of the PC said that the board will meet again (today) before the CCOP’s meeting to decide on the Pakistan Petroleum Limited transaction. The government aims to off-load 2.5 per cent shares of the company through secondary public offering in an effort to make at least $70 million. The government has a majority shareholding of 69% in the company. Later on, the transaction will be tabled before the CCOP for final approval.
The PC board reviewed showed concern over un-implemented decisions in the past two years and said that the process should be expedited.
For hiring of lawyers and law firms for Privatisation Commission, the PC Board constituted a committee comprising Chairman Laeeq Shiekh among other members for short listing the firms who have submitted expression of interest.
The board also selected eight charted accountant firms and two valuation firms to provide support services to the PC for three years. The board also approved the audited accounts of the Privatisation Commission for the year ending June 30, 2011.
Published in The Express Tribune, March 22nd, 2012.
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This should hardly surprise; policy-making on all fronts has been dismal.