The National Assembly standing committee on privatisation has strongly opposed National Investment Trust (NIT) sell-off and asked the Privatisation Commission to have a second look on its policy towards this key institution.
Sources said the committee held a meeting on NIT sell-off here on Wednesday and after threadbare discussion and hearing Privatisation minister Zahid Hamid's argument observed that NIT was a key instrument with the government to check the stock market exploitation and make sure that none of its player tales its undue advantage.
Zahid Hamid made a detailed presentation on steps taken by the Privatisation Commission to make NIT sell-off process transparent. He claimed that NIT privatisation will increase its annual and so the income of its individual and institutional units holders. However, the standing committee in absolute majority rejected his point of view that termed Privatisation decision of selling NIT as highly doubtful.
Two former privatisation ministers Khawaja Asif and Syed Naveed Qamar inquired from privatisation minister as to why Privatisation Commission was in haste to off-load NIT. They were of the view that Privatisation Commission's plan to off-load NIT was meant to handover it to some selected party.
NIT is a roughly Rs 80 billion fund and its annual income after tax) ranges between five to six billions. Being a huge fund it's a big player of the stock market. The investors feel that their investment in NIT, a government managed fund, was more safe and secure.
Sources said the standing committee members were of the view that NIT sell-off would hurt the units' holders interest and it would be in the best interest of the public that the trust remains with the government. The Privatisation Commission's extraordinary interest in NIT sale is creating doubts among standing committee members.
Sources said the standing committee members referred the Pakistan Steel Mills Corporation (PSMC) case, which was struck down by the apex court after privatisation. The committee members asked the Privatisation Commission authorities to refrain from repeating PSMC history in NIT case.
NIT sell off case is already in trouble due to short-listing of a Karachi-based fund management company which was part of the successful consortium in PSMC sell-off case.