The Oil and Gas Development Company Limited (OGDCL) consultant Shahid Akbar has opposed the strategic privatisation of the company and suggested to the government that instead it should use the option of Global Depository Receipts (GDRs) to offload shares of the state-owned oil giant in the international stock market.
An official of the privatisation commission told this correspondent on Thursday that the consultant has recommended GDRs option for the ODGCL and it is one of the various options being considered for this profit-making state-owned oil exploration and production company.
He said: "GDRs is one of the many options and the final decision on the OGDCL privatisation would be taken at the appropriate level in due course of time."
Experts and policy-makers are convinced that the GDRs is the best of all available options for the gas company in the prevailing situation and it could bring Pakistan good return instead of its strategic sale.
Pakistan had used GDRs option for the NBP and the PTCL, but in both cases, it received poor response and now they want to make the OGDCL a test case for Islamabad's long-time entry into the world stock market.
They are convinced that since oil exploration and production was a great attraction for investors, the OGDCL can bring desired results for Pakistan.
The OGDCL's IPO, which had received overwhelming response from domestic shareholders in the past, is reported to be a source of inspiration for the policy-makers to opt for GDRs for it.
Experts say prior to go for the GDRs option for the OGDCL, Pakistan would have to take a number of steps to ensure that the time and schedule finalised for such an initiative work to the expectation of the policy-makers.
The government has to take major steps to ensure that the schedule finalised for the OGDCL's GDRs was ripe and would bring good results from the international stock markets.
At the same time, Islamabad would be required to restructure the OGDCL house in such a manner that it respond to queries received from any of the client or company listed in any of the international market within a reasonable shortest time.
Experts on GDRs say two factors play pivotal part in making GDRs for any company a success: economic and political situation of a country and its ranking in the world stock market.
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