The government of Pakistan Tehreek-e-Insaaf (PTI) will resume talks with the management of Dubai-based Etisalat for payment of outstanding dues under the newly-appointed Advisor to Prime Minister on Finance, Revenue and Economic Affairs Dr Abdul Hafeez Sheikh who signed the deal 14 years back as privatization minister in the Shaukat Aziz-led cabinet.
Moreover, the PTI Government has yet to determine the way forward for de-listing 15 major Public Sector Entities (PSEs) however most of them were also in the privatization list when Hafeez Sheikh was holding the portfolio of Minister for Privatization and Investment from April 2003 to March 2006.
These are: National Bank of Pakistan (NBP), Industrial Development Bank Limited, Trading Corporation of Pakistan (TCP), Pakistan State Oil (PSO), Sui Northern Gas Pipeline Limited (SNGPL), Sui Southern Gas Company Limited (SSGC), Civil Aviation Authority (CAA), Pakistan International Airlines Corporation (PIA), Utility Stores Corporation, Pakistan Steel Mills (PSM), Pakistan Steel Fabricating Company Ltd, National Highway Authority (NHA), Pakistan Railways, National Construction Limited and Printing Corporation of Pakistan.
During the tenure of Hafeez Sheikh as the Privatization Minister, the government raised the highest amount of Rs 300 billion as privatization proceeds: 34 entities were privatized such as PTCL, PSM, Karachi Electric Supply Corporation (KESC) and generated controversies as well as labour unrest.
In 2005, major demonstrations organized by PTCL Workers Unions Action Committee took place in Islamabad but to no avail.
On March 31, 2006, the PSM privatization was in final stages when Dr Abdul Hafeez Sheikh's tenure as senator ended and he accepted a position in the World Bank.
The consortium that won the bidding included a Saudi group Tuwairqi, a Russian group M. Magnitogorsk Iron and Steel Works, Arif Habib and Siddique Sons. This consortium offered a bid of $362 million (Rs21.68 billion) at a rate of Rs 16.80 a share. Awais Leghari took charge as Privatization Minister after Dr Hafeez Sheikh's departure however the Supreme Court annulled the privatization of the mills.
Karachi Electric Supply Corporation (KESC) was privatized for Rs 15.8 billion in November 2005. The government spent Rs147 billion on KESC between 2002 and 2010, Rs109 billion before it was privatised and Rs38 billion after its privatized and asked Wapda to supply 600 MW to the power utility company notwithstanding its Rs81 billion outstanding payment.
The sale of 51 percent shares in Habib Bank Limited in 2004 was criticized by the then Alliance for Restoration of Democracy (ARD) maintaining that the divestment was done in haste as the process was completed in a week.
At present, PTI Government has eight PSEs in the active privatization programme, whereas 41 PSEs have been earmarked for Phase-II and the concerned ministries/divisions have been directed to conduct sectoral studies prior to their privatization.
These include: (1) National Power Management Co Ltd (i) 1230 MW Haveli Bahadur Shah and (ii) 1223 MW Balloki Powr Plants; (2) SME Bank Limited; (3) Services International Hotel; (4) divestment of government of Pakistan Residual Shared in Mari Petroleum Company Limited (MPCL); (5) Jinnah Convention Centre, Islamabad; (6) privatization of Lakhra Coal Mines; and (8) First Women Bank Limited.
Comments
Comments are closed.