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Govt to Sell its Stakes in 5 Energy Companies to UAE for $2 Billion

hydrabadi_arab

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The Federal Cabinet has approved selling its stakes in five energy companies to UAE for $2 billion on a government-to-government (G2G) basis, sources told ProPakistani.

These companies include Oil & Gas Development Company (OGDCL), Balloki Power Plant, Haveli Bahadur Shah Power Plant, and two other oil and gas companies.


Sources said that during today’s meeting of the Federal Cabinet, the approval to sell shares of OGDCL and two other oil and gas companies was given to fund the external financing gap. There had been a controversy regarding whether the International Monetary Fund (IMF) had demanded the country finance the gap to which Miftah Ismail has said that no such demand was placed by the IMF. The government was only arranging the funds to finance its external financing deficit.

Along with the sale of the shares, the government is also planning to sell Balloki Power Plant and Haveli Bahadur Shah Power Plant on a G2G basis to UAE, sources revealed. Miftah Ismail had previously mentioned the sale of both plants during a press conference in Islamabad, however, he had not revealed the country’s name. Similarly, today during a seminar, Miftah again mentioned the government’s plans to sell both plants without mentioning the value of the plants or the name of the country.

Sources say that the total funding through selling company shares, and both plants would amount to $2 billion.

It is to be noted that the government is yet to issue an ordinance in this regard as the session of the National Assembly (NA) is underway, and an ordinance cannot be issued during its commencement. However, sources say that the ordinance will most likely be issued after the NA session has ended.


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It is expected that the ordinance being issued on a G2G basis may be exempted from five different rules. This includes the Public Procurement Regulatory Authority (PPRA) rules, Securities and Exchange Commission of Pakistan (SECP) rules, stock market rules, privatization rules, and the Companies Act.
 

Ghazwa-e-Hind

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Zardari is buying the power plants using looted money via shell companies just like K-Electric

 

ziaulislam

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The Federal Cabinet has approved selling its stakes in five energy companies to UAE for $2 billion on a government-to-government (G2G) basis, sources told ProPakistani.

These companies include Oil & Gas Development Company (OGDCL), Balloki Power Plant, Haveli Bahadur Shah Power Plant, and two other oil and gas companies.


Sources said that during today’s meeting of the Federal Cabinet, the approval to sell shares of OGDCL and two other oil and gas companies was given to fund the external financing gap. There had been a controversy regarding whether the International Monetary Fund (IMF) had demanded the country finance the gap to which Miftah Ismail has said that no such demand was placed by the IMF. The government was only arranging the funds to finance its external financing deficit.

Along with the sale of the shares, the government is also planning to sell Balloki Power Plant and Haveli Bahadur Shah Power Plant on a G2G basis to UAE, sources revealed. Miftah Ismail had previously mentioned the sale of both plants during a press conference in Islamabad, however, he had not revealed the country’s name. Similarly, today during a seminar, Miftah again mentioned the government’s plans to sell both plants without mentioning the value of the plants or the name of the country.

Sources say that the total funding through selling company shares, and both plants would amount to $2 billion.

It is to be noted that the government is yet to issue an ordinance in this regard as the session of the National Assembly (NA) is underway, and an ordinance cannot be issued during its commencement. However, sources say that the ordinance will most likely be issued after the NA session has ended.


ALSO READ
Govt Begins Preparations for On-Site Visit of FATF Team
It is expected that the ordinance being issued on a G2G basis may be exempted from five different rules. This includes the Public Procurement Regulatory Authority (PPRA) rules, Securities and Exchange Commission of Pakistan (SECP) rules, stock market rules, privatization rules, and the Companies Act.
Whats wrng with competitive bidding
Does giving assets with govt to govt deals give you bettr results

Oh and when will we get the 1b$ from PTCL deal?

@FOOLS_NIGHTMARE
Bhai direct deal key kya faida hey?
 

ACE OF HEARTS

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Until a new government comes, such decisions should be deferred.

Otherwise, the new government will open an investigation into the transaction, that might TAINT the relationship with UAE. Such huge transactions are bound to open up later , for scrutiny.

Simultaneously, UAE should wait until a new popular government comes to power, with a refreshed mandate.

OTOH, selling loss making entities should be the first priority.
 

Ghazwa-e-Hind

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Looks like establishment is on board with Imported govt (zardari) on selling state assets.

Today they're selling power plants;

Tomorrow nuclear weapons while citing an excuse we're poor, we can't maintain them

 

Olympus81

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Why don’t they start with selling DHA plots.

Interestingly, they seem to be selling assets which are profitable.
 

Waterboy

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Looks like establishment is on board with Imported govt (zardari) on selling state assets.

Today they're selling power plants;

Tomorrow nuclear weapons while citing an excuse we're poor, we can't maintain them

PTI cultist should be the last people to talk about nuclear weapons. Keep your bullshit and propaganda to yourself.
 

SoulSpokesman

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@ACE OF HEARTS @Olympus81

Until a new government comes, such decisions should be deferred.

That's correct- such momentous decisions should only be taken by governments which have popular legitimacy.

Simultaneously, UAE should wait until a new popular government comes to power,

By default, that is bound to happen. It is unlikely any investor would buy these assets when they know a new govt or an activist SC could strike it down.

Interestingly, they seem to be selling assets which are profitable.

Who would buy an unprofitable one?

Regards
 

ziaulislam

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Until a new government comes, such decisions should be deferred.

Otherwise, the new government will open an investigation into the transaction, that might TAINT the relationship with UAE. Such huge transactions are bound to open up later , for scrutiny.

Simultaneously, UAE should wait until a new popular government comes to power, with a refreshed mandate.

OTOH, selling loss making entities should be the first priority.
UAE govt isn't even paying the older amount
 

Wood

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Asset monetization is the way forward. The urgency of the forex crisis has forced the government to bypass the usual competitive process. Nevertheless, the money that flows in is an at risk investment and not the usual loan that has to be paid back. :cheers:
 

hamza gareeb

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This is good. The Emirates should take advantage of this opportunity due to the economic crisis in Pakistan. like they did it and take advantage of the crisis in Turkey by buying assets, companies and shares 10b$. I wish they buy Pakistan air line and airport.
 

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