Economic Survey: Trusts registered in 64 SOEs to distribute BESOS certificates

The Privatisation Commission has registered Trusts in 64 government owned entities to distribute certificates of Benazir Employees Stock Scheme (BESOS) till date, according to Economic Survey (2011-12). The government also initiated the programme for public sector entities in the form of offering 12 percent stock options to employees of 78 public organisations.
It is expected that approximately 500,000 employees of 78 SOEs will benefit from this scheme. So far, Trusts have been registered in 64 entities. Out of these, Unit Certificates have been distributed among 142,756 employees of 50 entities. The total dividend received from the Trusts of 11 entities stands at Rs 6.79 billion (approx.) out of which 50 percent has been distributed among employees of respective entities and the remaining 50 percent has been transferred to the Central Revolving Fund (CRF) of the Privatisation Commission. Buyback claims received till date stand at Rs 4.45 billion, out of which Rs 1.160 billion have been paid.
From early 90s to 2012, the Privatisation Commission managed to complete approximately 167 privatisation transactions, generating revenue of over US $9 billion. The last privatisation transaction completed by the Privatisation Commission was of Hazara Phosphate and Fertilisers Limited (HPFL) in November 2008. Thereafter, the privatisation program entered into an extended lean period due to domestic and global challenges. Domestically, unstable law and order situation and negative economic outlook adversely affected the investment climate in the country.
Despite challenges, survey stated that the government had re invigorated the privatisation program by focusing on a policy of "Privatisation for the People." Under this program a renewed focus is placed on domestic capital market listings. Despite many challenges, the Privatisation Commission is actively pursuing a capital market road map, which includes a secondary public offering of Pakistan Petroleum Limited and an Exchangeable Bond for the Oil and Gas Development Company Limited. The transactions will be launched in the near future subject to market conditions.