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Privatisation plan for ’08-09 to be okayed today

* Privatisation status of ‘big ticket items’ such as PSO, PPL, OGDCL, NITL to be announced n GDR launch will also be finalised

By Sajid Chaudhry

ISLAMABAD: The Privatisation Commission Board is scheduled to meet today (Tuesday) to approve the PPP-led government’s aggressive privatisation programme for the current fiscal year 2008-09, a senior official at the Privatisation Commission told Daily Times on Monday.

Federal Minister for Finance, Revenue, Privatisation and Investment Syed Naveed Qamar would chair the meeting. The significance of the meeting is that the government would announce privatisation status of important public sector enterprises (big-ticket items) such as the Pakistan State Oil (PSO), Pakistan Petroleum Limited (PPL), Oil and Gas Development Company Limited (OGDCL), and the National Investment Trust Limited (NITL).

The enterprises that offer more attractive investment opportunity would be higher on the priority list for privatisation.

The status of the launch of Global Depository Receipt (GDR) under which shares of important public sector enterprises that would be offered for sale at international stock markets would also be finalised. Some Rs 52 billion privatisation proceeds are in the pipeline and inclusion of more important public sector entities in the privatisation schedule for the current fiscal year would help generate additional financial resources.

Privatisation programme for September and October: The Privatisation Commission has already decided to complete the privatisation of SME Bank, Hazara Phosphate Fertilizers Limited, National Power Construction Company and Heavy Electrical Complex by September 2008 and completion of all necessary arrangements for Global Depository Receipts (GDR) of Kot Addu Power Company for its listing in October 2008. The government has already directed the concerned officials to expedite the privatisation process for the sale of 26 Pakistan Tourism Development Corporation’s motels and restaurants, which have received enthusiastic response from the reputed investors in the related field.

According to the official sources the as an option privatisation ‘big ticket items’ like the PSO, PPL, OGDCL, power generation and distribution companies and NITL would be considered in the Privatisation Commission Board meeting. Qadirpur gas field’s privatisation is also on the card that would help generate much needed foreign exchange of $3.5 billion for the government which is facing foreign exchange crunch due to host of reasons. At present, some 57 public sector enterprises and corporations are included in the tentative list for privatisation. However, their final status would be determined in the meeting. According to the sector-wise break-up, the following are their names:

Banking, finance and insurance sectors: The NITL, First Women Bank, United Bank Limited, Habib Bank Limited, National Bank of Pakistan, National Insurance Corporation, Pakistan Insurance Corporation, State Life Insurance Corporation.

Oil, gas and energy sector: The OGDCL, Pak Arab Refinery Limited, Pakistan Petroleum Limited, Pakistan State Oil Company Limited, Sui Northern Gas Pipe Lines, Sui Southern Gas Pipe Lines, Peshawar Electric Supply Company, Faisalabad Electric Supply Company and Jamshoro Power Company Limited.

Fertilizer sector: The National Fertilizers Corporation, Hazara Phosphate and Fertilizers Limited.

Engineering sector: The State Engineering Corporation and its units, National Construction Limited, Pakistan Machine Toll Factory, Pakistan Steel Mills Corporation & its units, Pakistan Steel Fabricating Company Limited.

Mineral and Natural Resources: Pakistan Mineral Development Corporation and Lakhra Coal Mines.

Ghee Units: Ghee Corporation of Pakistan, Morafco Industries (machinery as is where is basis).

Automobiles sector: The Pakistan Automobiles Corporation, Republic Motors Limited (assets), and the Sindh Engineering Limited.

Infrastructure sector: The Civil Aviation Authority, Port Qasim Authority, Karachi Port Trust, and the National Highway Authority.

Transport sector: The Pakistan International Airlines Corporation, Pakistan National Shipping Corporation, Pakistan Railways and its allied facilities, factories, workshops etc.

Tourism sector: The Pakistan Tourism Development Corporation, Services International Hotel Lahore, and PTDC Motels and Restaurants.

Other sectors: The other public sector enterprises to be privatised include the Printing Corporation of Pakistan, Tomato Paste Plant, Corporation and Others (status to be determined), State Cement Corporation of Pakistan, Sate Petroleum Refining and Petrochemicals Corporation, Pakistan Industries Development Corporation, Utility Store Corporation and its stores, Trading Corporation of Pakistan, Cotton Export Corporation of Pakistan, Rice Export Corporation of Pakistan, Export Processing Zone Authority, Pakistan Industrial and Technical Training Centre, Convention Centre, Islamabad and Pakistan Engineering Company.

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