ISLAMABAD: The government has budgeted Rs 100 billion from privatisation proceeds in financial year 2020-21 against a revised target of Rs 150 billion in financial year 2019-20.
In its Rapid Financing Instrument documents uploaded on its website, the IMF 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.
Privatization Division is targeting privatisation of two RLNG power plants as well as other transactions in the first quarter of the next financial year (tentative) as ongoing Covid-19 has brought commercial activities to a standstill.
The government has revised the date for the bidding process of two power plants from last quarter of the current fiscal year to the first quarter of 2020-21 on the request of potential bidders. As many as 12 investors have submitted statements of qualification (SOQs) and have been pre-qualified for bidding process.
Sources said that due diligence process was under way and likely to be completed by mid July 2020 and it could not be completed until potential buyers' completed site visits, not possible due to global travel restrictions.
The revival plan of Pakistan Steel Mills (PSM) also faces a delay due to lockdown in the country. Lockdown is affecting the work of a consortium of Financial Advisors as they were scheduled to submit the transaction structure by March 31, 2020. The government would be unable to arrange road shows for PSM because of global restriction on gatherings.
The SME Bank transaction, which was scheduled to be completed in the third quarter of the current fiscal year, has also now been delayed till first quarter of next financial year.
Privatization of Services International Hotel (SIH), Jinnah Convention Centre, House Building Finance Company Limited, Heavy Electrical Complex, First Women Bank and Jinnah Convention is targeted to be completed by end August 2020.
The government has also postponed sale of properties identified by the ministries and divisions due to the onslaught of the pandemic though no timeline has been set for the privatization of Nandipur Power plant.
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