ISLAMABAD: Privatisation Division has short listed 10 entities which are scheduled to be sold out in financial year 2020-21 to achieve budgeted revenue of Rs 100 billion.
Federal Minister Mohammedmian Soomro chaired a meeting on Sunday which reviewed and approved new schedule for privatisation of ongoing transactions. The new schedule is contingent upon resumption of economic activities and improvement in market conditions once Covid 19 pandemic situation is improved.
In its Rapid Financing Instrument documents uploaded on its website, the IMF already stated that Pakistan has not generated any revenue in the first three quarters of current financial year and has projected no proceeds from the privatisation programme in the fourth quarter of 2019-20; the Fund projected that no revenue will be forthcoming from privatisation in the next financial year.
The division has deferred the privatisation of 8 entities most of them are capital market transaction which is part of 18 entities active list of privatisation approved by Cabinet Committee on Privatisation (CCoP) in November 2018.
According to new timeline, privatisation division is anticipating to sale out much delayed two RLNG power plants 1223 MW Ballocki Power Plant and 1230 MW Haveli Bahadur Power Plants, revival of Pakistan Steel Mills plan, SME bank Limited, services International Hotel Lahore and Jinnah Convention Centre, Islamabad in the second quarter of next financial year or by end of December 2020.
In first quarter of financial year 2020-21, the privatisation division will likely to complete investors due diligence process and formal approval of bidding process by CCoP for sale off two RLNG power plants. These transactions are based on how quickly stakeholder ministries, provincial government and regulatory bodies address the multiple issues involved in the transaction.
For revival of Pakistan Steel Mills, the transaction structure will be approved by CCOP in first quarter of next financial year and expression of interests from bidders and pre-qualification of potential bidders will be finalized.
Other transaction which is scheduled to be completed in third quarter of next financial year are First Women Bank Limited, House Building Finance Company Limited, Heavy Electrical Complex (HEC) and Nandipur Power Plant privatisation is scheduled to be completed in fourth quarter of next financial year.
At least 8 transactions are temporarily on hold due to unfavourable market conditions and other pre-requisite formalities to address fundamental regulatory and legal issues pending with various ministries and managements of the entities.
These are divestment of up to 20 percent shares of Pakistan Reinsurance Co. Ltd, divestment of up to 7 percent shares of Oil and Gas Development Company Limited, divestment of up to 10 percent shares of Pakistan Petroleum Limited (PPL), divestment of up to 20 percent shares of State Life Insurance Corporation divestment of 18.39 percent shares of Mari Petroleum Company Limited, Pakistan Engineering Co. (PECO), and Privatisation of Sindh Engineering Limited.
On Sunday, the transaction committee discussed the revised transaction structure for revival of Pakistan Steel Mills. Different options were considered for revival and Financial Advisory Consortium was directed by the Committee to further fine tune proposals. Another session of the Transaction Committee has been scheduled on Tuesday to finalize the Transaction Structure. The recommendations of the Committee will be presented to the PC Board and Cabinet Committee on Privatization for necessary approvals.
A meeting of Key Stakeholders on the issue of Receivable & Payables by E-Electric was also held at Privatisation Commission. The meeting deliberated on finalization of Arbitration Agreement to settle the K-Electric Receivables & Payables from various Public Sector entities. Many important aspects of the arbitration agreement were agreed by the Stakeholders. For few unsettled issues it was decided to have a follow-up meeting next week.
The auction of the Federal Govt owned 28 properties, earlier scheduled to be carried out in April 2020 will now be carried out as soon as the existing restrictions ease out and market conditions are deemed suitable.
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