The government decided to hold back the auction of 10 per cent of shares in OGDCL, which manages the country’s sizeable oil and gas reserves.
PTI chairman Imran Khan and Pakistan Awami Tehreek chief Dr Tahirul Qadri led thousands of supporters in weeks of protests outside Parliament, pressing for the resignation of Prime Minister Nawaz Sharif over alleged election rigging.
The rallies, which began in August, descended into violence at points. They failed to force Sharif from power but destabilised the government for a while.
"Due to sit-ins the share price of OGDCL fell from Rs274 to Rs225 and we do not want to sell so low," Finance Minister Ishaq Dar told a press conference.
"Had there been no sit-in and share price had remained same, the government would have received $600 million, $200 million domestically," Dar said, noting that a recent slump in international oil prices had also contributed to the lukewarm response.
He said that had the government gone ahead with the sale, it would have only received $180 million from abroad and $160 million locally.
"We should not be seen as distressed sellers. Pakistan's assets will not be sold or disinvested under pressure," Dar said.
He said the "right message" had gone out and OGDCL shares had risen to around 240 rupees.
The Privatisation Commission had offered 311 million shares to international investors, but it got offers for merely 50 per cent.
Opposition parties and the employees of the company had also opposed the OGDCL auction.
Khan and Qadri's rallies forced Chinese President Xi Jinping to psotpone a planned trip to Pakistan in September, and the unrest also saw the rupee lose more than four per cent of its value against the dollar in August.
The International Monetary Fund (IMF) on Saturday indicated Pakistan was on track to receive the latest installment of a $6.8 billion bailout package agreed last year.
The deal was arranged to help the country achieve economic reforms, particularly in its troubled energy sector.
"The mission was encouraged by the strong fiscal performance achieved during FY 2013/2014, and by the authorities' determination to further lower the deficit to 4.8 percent of GDP in the current fiscal year," an IMF statement issued on Saturday said.
COMMENTS (18)
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Pakistan minister has a bout of cold and sneezing... result of PTI dharna. Proves the success of Imran .
@Zara Seriously? Trying hard to make Pakistan prosperous? Did they suddenly realise over a year into their THIRD term that they were supposed to do something about it? Or was the entire progress of the country dependent on these 80 days ?
PMLn should create hinderances for PTI, if PTI ever wins NA. I see NS and his party trying hard to make our country prosperous, whike IK is doing the opposite.
PTI should be barred from politics.
I did not do my home work, I told the teacher that I could not do it coz of the Dharnas.
@GS@Y: If to take my right i have to shout atop a container. Why not? I WILL DO IT. My vote was changed and your leader changed it. I want my vote changed back to what it originally was. You get that wide and clear?
@GS@Y: Read the comments GASY. you are the wrong one here. I wish I was the relative of Nawaz then I could have gotten such a post. But sadly me and you are not Nawaz relatives so we can happily rot on the roads.
I considered Dar a reasonable person, but I was wrong.
Keeping aside whatever the government team says, the actual reason for low interest of investors in ogdcl share is worldwide decline in crude / oil futures which has decreased by approximately 25%. No one wants to invest in oil stocks at this time but since our government team comes from another planet they rushed over the deal and the move backfired.
Ma Sha Allah! The share price of OGDCL had already been at Rs 273 on 12th and 15th September when the worst of instability had passed (March towards PM House, Shelling and battle in Red Zone). The share price started declining from then onward and came at Rs 228 per share on 31st October, in line with the declining oil prices in international market. Yet the Finance Minister blames the protests for it. What a shame! This is the Intellectual Dishonesty that has brought Pakistan to its current state.
I worry when our finance minister does not recognize that falling global oil and gas prices might affect an oil and gas company and instead blames whatever is convenient or whatever they wish to blame. As for the comment by "Enough is enough", you sir, need to pick up a book and learn what causes movements in global commodities rather than blame whatever makes you feel uncomfortable. I've seen that most support of the government in regards to selling off the crown jewels are by and large due to vested interests, I sincerely doubt yours is anything but.
Pathetic .. might as well blame India/Israel or USA. Maybe it's just as simple as nobody wants to buy a minority interest in a business where the majority owner (govt) has a vested interest in selling it's product at low prices to garner votes?
@Jameel: He has a life. He's doing important national work, instead of wasting time shouting atop containers.
The Imran's Go Nawaz Go is the best. Thanks for making me laugh after a long day of stressfull day. :)
Time to remove dharna by force. Let the Govt legislate first about disallowing dharna in and around 'D' chowk. Anyone, disrupting the nation should be booked no matter how important or powerful politically. Time to call the bluff of the 'Third Umpire.'
Very lame person he is. Dar, get a life.
Yes, blame everything on the Sit-in's...it seems the finance ministers "share" is not coming out to what he had calculated hence this hue and cry about selling OGDCL..
On one hand, they say dharna flopped and there were only empty chairs, on the other hand the dharna was so successfull that it caused a drop in the stock market, the rupee and ability of govt to funciton. I wish I could get away with such "Gullu logic" in my job!