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No cut in privatisation proceeds: PC

ISLAMABAD: There is no plan to cut privatization proceeds in the year 2008-09, a Privatization Commission (PC) spokesman said Tuesday.

Referring to a news item appeared in some section of press about privatization proceeds target cut by 98 percent, he said PC has been able to achieve privatization proceeds amounting to Rs 27 billion so far and not Rs 1.6 billion as reported in the said news item.

While refuting this claim it clarified that for the 2007-08, privatization proceeds target of Rs 75 billion was envisaged considering the privatization of HBL GDR, OGDCL GDR, KAPCO GDR, PTCL half yearly installments, strategic sale of PSO, SME Bank, Coal and Salt Mines projects and some other industrial units.

He said the estimates of proceeds on account of privatization were subject to favorable geo political and enabling environment, market appetite and investors interests.

He said the preparatory work done during the current financial year would help PC to privatize most of the entities during next fiscal year (2008-09), which is expected to realize sale proceeds of Rs 122 billion approximately.

In case of entities directly owned by the Federal Government, the sale proceeds realized by the PC are transferred to Ministry of Finance while certain proceeds are transferred to other entities whose shares are sold and who are entitled to such proceeds, he added. The proceeds received by such entities are subsequently transferred to Government of Pakistan in the shape of dividends/profits, the spokesman concluded. staff report

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