It is now smooth sailing for the Privatisation Commission to complete Pakistan State Oil (PSO) sell-off by March 31, as the defence ministry has withdrawn its objections on the issue, it was learnt.
An official told Business Recorder on Wednesday that the Defence ministry cleared PSO for privatisation after an assurance from the authorities that the armed forces petroleum products needs will be fulfilled in the PSO post privatisation period.
The defence ministry was resisting PSO sell-off, terming it as a move against the national interest. Its argument in the past was that being a public sector entity PSO was the only reliable source for armed forces for supply of petroleum products in normal and emergency situation and its sell-off will leave them in disarray.
The Privatisation Commission and its consultants made repeated attempts to convince the Defence ministry officials that PSO sell-off will not disturb the armed forces petroleum products supply since it was a serious issue that can never be compromised. They were repeatedly told that in the post PSO privatisation period, the state would ensure that the armed forces get uninterrupted supply of petroleum products to meet their needs in the peace and war times. These unequivocal assurances did not work for years, which resulted in inordinate delay in PSO privatisation.
Sources said that after a nod from the defence ministry, the Privatisation Commission was focusing on defaulted payments of PSO and they are confident that these issues will be sorted out.
Sources said the Privatisation Commission had given a detailed briefing to the board on PSO sell off process the other day and informed that its authorities were inching close to the solution of all outstanding issues including the outstanding payments.
The Privatisation Commission has received 12 expression of interest (EoIs) for acquiring 51 percent PSO shares. The authorities are chasing the deadline of March 31, to complete the transaction. The official said: " After the defence ministry clearance, there is no obvious hurdle in PSO sell-off as per schedule".
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