The government is likely to leave the privatisation of major public sector entities for the next government and would only proceed for Global Depository Receipts (GDRs) and Initial Public Offerings (IPOs), official sources told Business Recorder.
The Privatisation Commission (PC) realised Rs 86 billion in 2006-07 against the budgeted target of Rs 75 billion, and similar target had been fixed for the current fiscal year, which appears to be unachievable.
Sources said: "The next government will take decisions on all major transactions, and we will proceed only for GDRs and IPOs already planned by the present administration."
Analysts are also of the view that it is not the right time to go for privatisation of more entities, as investors have adopted the policy of 'wait and see'.
They said that the privatisation process had already been dead after the annulment of Pakistan Steel Mills (PSM) deal by the Supreme Court, and the privatisation process of Pakistan State Oil (PSO) has also been halted as the Attock Group has challenged its disqualification from the list of bidders.
With sudden change of Privatisation Minister and post of Secretary Privatisation being vacant, chances of IPOs and GDRs were also looking bleak, said another official.
He was of the view that after the demise of two federal secretaries--one in the Prime Minister House, and the other in an accident in Saudi Arabia--no Secretary is ready to join the Privatisation Ministry.
According to official sources, the planned privatisation of SME Bank, National Investment Trust, State Life Insurance Corporation (IPO), Pakistan Petroleum Limited (PPL), National Power Construction Company (NPCC), Hazara Phosphate Fertilisers Limited, Services International Hotel, Roosevelt Hotel New York, Jamshoro Power Company Limited (JPC), Republic Motors Limited Lahore, Pakistan Tourism Development Corporation (PTDC) Motels and Hotels, Heavy Electrical Complex, Pakistan Steel Mills IPO, Lakhra Coal Miners, Faisalabad Electric Supply Company(Fesco) and Pakistan Mineral Development Corporation salt and coal mines would be left for the next government.
They said that privatisation of Heavy Mechanical Complex (HMC) was shelved only to appease one of the Federal Ministers who hails from Taxila.
According to the PC's earlier presentation to the Cabinet Committee on Privatisation (CCoP), GDR for the Habib Bank Limited (HBL) had been planned for September 2007, while invitation of SoIs, pre-qualification, bidders due diligence, pre-bid conference and bidding of SME Bank had to be held during the first quarter of 2007-08, which would be missed.
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