The Privatisation Commission has provided Rs 240.412 billion, from the proceeds of 26 public sector units privatised since November 2002 till to-date, to the finance ministry, sources at PC told Business Recorder here on Friday.
They added that in the PC Ordinance 2000, it was specified that 90 percent of net privatisation proceeds would be allocated to debt retirement and the remaining to poverty alleviation programmes, therefore Rs 24 billion should have been spent on such programmes during the past three years.
The sources said that the Commission is entrusted with selling of federal government property such as its shares in banks, industrial units, public utilities, oil, gas and transport companies to reduce government's direct participation in commercial activities, limit its role to the oversight of economy and to ensure equity and economic justice.
They said that the mega projects privatised since November 2002 included HBL (51percent shares) Rs 22.409 billion, OGDCL IPO (5 percent) Rs 6.848 billion, SSGC IPO (10 percent) Rs 1.731 billion, PPL IPO (15 percent) Rs 5.655 billion, POL Rs 4.761 billion, ARL Rs 1.039 billion, Faletti's hotel Rs 1.211 billion, Pakarab Fertilisers Ltd Rs 14.125 billion, Kapco Rs 5.282 billion, National Refinery Ltd Rs 16.415 billion and PTC (26 percent shares) Rs 155 billion, while Rs 20.240 billion of KESC privatisation proceeds were awaited.
According to the sources, upcoming transactions for privatisation include Pakistan State Oil, Pakistan Petroleum Ltd PPL, National Investment Trust, Faisalabad Electric Supply Co, Pak American Fertiliser, Pakistan Steel Mills Corporation, Sui Southern, Sui Northern Gas Pipelines Ltd, and Karachi Shipyard & Engineering Works Ltd.
In an interview with this scribe, Economic Adviser to the Finance Ministry Dr Ashfaque Hassan Khan said that the country's public and external debt had declined to its lowest in decades, but current account balance again slipped into the red during FY 2004-05 after three years.
"Prudent debt management, build up of the foreign exchange reserves and the higher foreign exchange earnings, pre-payment of expensive debt and debt write-off are the major factors responsible for the reduction in the country's debt burden" he added.
Commenting on the present level of poverty in the country, an economist observed that it was a major challenge for the government that required targeted policy interventions to provide quick relief through short-term employment opportunities and financial assistance, since the current inflation at 9.3 percent is the highest in 8 years.
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