The Board of the Privatisation Commission has decided to float Global Depository Receipt (GDR) of Oil and Gas Development Company Limited (OGDCL) shares worth up to one billion dollars.
This decision of the Board of the Privatisation Commission would be submitted to the Cabinet Committee on Privatisation (CCoP) for final approval, said Minister for Privatisation Dr Abdul Hafeez Sheikh while talking to newsmen after a daylong meeting of the Board of the Privatisation Commission here on Thursday.
He said that the board also approved the broad parameters of the agreement between Government of Pakistan and Etisalat of the UAE, for privatisation of PTCL and it would also be placed before the CCoP for necessary consideration and approval.
The meeting was informed that Expressions of Interest (EoIs) for the appointment of Financial Advisory Consortia for the divestment of OGDCL's 10-15 percent shares through GDR and in the domestic market have been invited.
The minister informed the newsmen that it was decided in the board meeting that due diligence of 13 pre-bid potential bidders for Pak-American Fertilisers Limited (PAFL) would be held in January while the bidding would be held in February. The meeting also decided that 20 percent shares of State Life Insurance Corporation (Slic) and 10 percent shares of Pak Arab Refinery Limited would be floated under 'privatisation for people' programme.
He said that it would be the effort of the board to float shares of one company in first quarter of the next year and shares of second company would be floated in second quarter of the next year.
He said that the meeting was also informed that as the final payment of HBL privatisation was due in February, so work would be started for divestment of its more shares. To a query, he however, said that no percentage was fixed in this regard as process has yet to be started.
Replying to various queries, the minister said that main payment in case of PTCL privatisation would be up front while rest of the payment would be 'staggered'. He however, said that they would disclose anything about agreement between the government of Pakistan and Etisalat after its approval by the CCoP.
About 'privatisation for people' programme for next year, he said that privatisation of companies like PSO, Pakistan Steel and PPL were at the advanced stage. While work on National Investment Trust and Pak-American Fertiliser would also be carried out. He said that Expressions of Interest (EoI) of Sui Southern Gas Limited and Sui Northern Gas Pipelines Limited have already been invited and work on these companies would be accelerated but cautiously seeing their size.
He termed the year 2005 as the brightest year in the history of privatisation in Pakistan. He also termed last three years most successful. Supporting his claim he said that during last 13 years, privatisation worth Rs 96 billion was made while during last three years it was worth Rs 276 billion.
He hoped that this momentum would be maintained next year too. He said that rights of workers in all the 28-29 transactions done in his tenure were well protected.
Meanwhile, the board also formulated its recommendations for the divestment of GoP shares of State Life Insurance Corporation (Slic) through Public Offering. The PC has so far offered GoP shares of OGDCL, PPL, NBP, SSGC, PIAC, UBL & KAPCO to the common man through public offerings.
The meeting reviewed the implementation status of the decision taken in the earlier meeting and discussed the privatisation process of various other upcoming and ongoing entities. The members of the PC Board, senior officials and representatives of the respective ministries and departments were present during the meeting.