Govt offers its SOE stakes to 2 UAE firms
- State Owned Entities include OGDCL, PPL, NBP, PIA and PNSC
ISLAMABAD: The government has reportedly offered its stakes in five top State-Owned Entities (SOEs) to two top companies of the United Arab Emirates (UAE), well informed sources in Finance Division told Business Recorder.
The SOEs whose shares have been offered to key UAE entities are Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), National Bank of Pakistan (NBP), Pakistan International Airlines (PIA) and Pakistan National Shipping Corporation (PNSC).
According to sources, during the recent visit of Prime Minister Shehbaz Sharif to UAE on January 12-13, 2023, it was inter alia discussed with the UAE leadership regarding more market access for Pakistani products and UAE investment in Pakistan’s public sector entities.
The sources said Prime Minister, in his engagement with heads of the economic entities in UAE including Abu Dhabi Development Holding Company (ADO) and International Holdings Company (IHC), invited their investment in National Parks Management Company Limited (NPPMCL), solar power projects, airport management of Karachi, Lahore and Islamabad and equity in five SOEs.
UAE to loan $1bn, roll over another $2bn
The sources maintained that both entities hold investment funds portfolio of $300 billion and have showed interest in investing in profitable public entities in Pakistan.
Prime Minister Shehbaz Sharif was due to discuss operationalization of $1-billon financing facility from UAE, with the UAE President Sheikh Mohamed bin Zayed Al Nahyan on Monday but his visit to Islamabad was postponed at the eleventh hour due to bad weather.
Finance Ministry has shared update on operationalization of newly announced $1 billion financing facility offered by UAE.
During the recent visit of Prime Minister Shehbaz Sharif the UAE pledged $1 billion new loans besides agreeing on rollover of existing loan of $2 billion aimed at helping Pakistan deal with the economic crisis. The amount; however, is yet to be transferred to Pakistan.
Commerce Ministry has shared an update on proposed Comprehensive Economic Partnership Agreement (CEPA) between Pakistan and UAE which will help enhance economic and trade cooperation. Pakistan is expecting bilateral trade will increase to $10.6 billion.
Aviation Division, sources said, has shared its viewpoint on permission to land A-380 at Islamabad airport and transfer of management of airports to UAE. Both issues were discussed between Pakistan and UAE during the visit of Prime Minister to Dubai.
Finance Division is now again dealing with remaining payment by M/s Etisalat held up due to controversy on legal status of properties. Finance Minister Ishaq Dar who accompanied the Prime Minister during his visit to UAE is coordinating with M/s Etisalat.
Power Division has shared update on PM’s solar initiatives, according to which the government intends to generate 10,000 MWp to replace existing expensive generation. Initially, a 600 MWp plant has been envisaged in Muzaffargarh.
Copyright Business Recorder, 2023
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