Govt approves privatisation of Steel Mills, PIA

[Edevelop]

ISLAMABAD: The government on Thursday approved to sell 26% or more shares of 31 state-owned entities including Pakistan International Airlines (PIA) and Pakistan Steel Mills, fulfilling a key condition of the International Monetary Fund under the $6.7 billion bailout programme.

The list was approved by Cabinet Committee on Privatisation (CCOP) three days after expiry of September 30 deadline set by the IMF. The deadline was given to provide a detailed plan for the respective entities with respect to turning around the loss-making firms.

The Privatisation Commission had tabled a list of 30 items but the CCOP, headed by federal finance minister Ishaq Dar, added Lakhra Power Plant at the eleventh hour. The privatisation of Lakhra Plant would be subject to approval of the Council of Common Interest, as the plant was not among the 65 entities that the CCI had earlier approved for privatisation and restructuring.

Last month, the Supreme Court of Pakistan had struck down the Lakhra Power Plant’s lease to M/s Associated Group for 20 years after finding faults in the lease agreement. The apex court had declared the lease as illegal and void and had directed the federal government to conduct an inquiry to fix civil and criminal liabilities on beneficiaries in accordance with law.

Among the approved 31 entities are PIA, PSM, Pakistan State Oil, Islamabad Electricity Supply Company and Gujrawanala Electricity Supply Company. The government has already announced to sell 26% stakes of the PIA to a strategic partner but the inclusion of the PSM was a surprising one.

Earlier, the government had announced to restructure the loss making entity instead of privatising it after the main opposition party in the National Assembly threatened to launch a country wide strike.

According to a Finance Ministry official, it was not necessary that the government will privatise all the 31 enterprises. He said that the approval was given for all of them and after Eid the Privatisation Committee will draw up a list comprising of half a dozen names among the 31 entities that could be privatised on a fast-track basis.

However, PIA has be privatised by December 2014 as part of the IMF condition.

The future of employees and political backlash to the privatisation will be key determinants for reaching a decision of full or partial privatisation, the official said.

The CCOP directed the Privatisation Commission to ensure that the interests of employees are protected at all cost, according to a handout of the ministry of finance.

He said it was also not necessary that the government will sell only 26% shares. There was possibility that depending on the entity, the government may sell majority shares to the private parties where the strategic partners refuse to take management with minority shares.

The CCOP approved four-pronged plan for these entities that revolved around off loading shares in the stock market, handing over management control to the private sector, divestment and selling assets where necessary.

The government will off load shares of Oil and Gas Development Company Limited, Pakistan Petroleum Limited, Pakistan State Oil, Habib Bank Limited and Untied Bank Limited, as these entities were already registered in the stock markets.

The CCOP may decide either to handover management control of National Insurance Company Limited or issue Initial Public Offering (IPO) at stock market. Islamabad Electricity Supply Company and Gujrawanala Electricity Supply Company would be offered for for strategic partnerships.

Despite approval for privatisation, there was possibility that the PSM could be restructured given the opposition to its privatisation, the officials said.

3G licence auctions

The committee also approved the decision to initiate working towards the auction of 3G licenses.

First meeting of the Advisory Committee for the auction of spectrum for the next generation of mobile services in Pakistan was presided over by Finance Minister Senator Mohammad Ishaq Dar.

After due consideration the committee finalised the recommendations for approval of the Prime Minister.

Minister of State for Information Technology and Telecom (IT&T), Anusha Rehman had earlier said that the government was committed to the transparent auction of 3G technology, which will not only upgrade mobile network infrastructure but will also generate revenue for the country.

Govt approves privatisation of Steel Mills, PIA – The Express Tribune

 

[[Bregs]]

This move will give govt breathing space with finds in kitty too but still the govt is major stake holder and has all the controlling majority rights

 

[Edevelop]

31 enterprises up for sale


ISLAMABAD: The government directed the Privatisation Commission on Thursday to immediately start the process for sale of 31 public sector entities (PSEs) through initial and secondary public offering and transfer of 26 per cent shares, along with management control, to the private sector.

The decision was taken at a meeting of the Cabinet Committee on Privatisation, presided over by Finance Minister Ishaq Dar, to comply with a structural benchmark agreed to under the IMF programme.

Minister of Water and Power Khawja Asif, Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi, Minister for Planning and Development Ahsan Iqbal, Minister of State for Privatisation Khurram Dastagir, federal secretaries, the governor of the State Bank of Pakistan and chairmen of the Securities and Exchange Commission of Pakistan and the Board of Investment attended the meeting.

An official said the Council of Common Interests had approved these transactions in 2006, 2009 and 2011 and the CCOP just reiterated the government’s approval to go ahead with the ambitious privatisation programme.

The meeting considered a list of public sector companies submitted by the Privatisation Commission.

“After thorough deliberations, the committee agreed to initiate the process of privatisation and directed the commission to ensure that the interests of employees were to be protected at all cost,” said a statement issued by the ministry of finance.

“Most of the PSEs will be offered to the private sector through strategic divestment, including up to 26pc stakes along with management control, while shares of other companies will be offloaded through public offering,” an official told Dawn.

He said the committee did not take a decision on which companies be sold through strategic disinvestment because this was something the Privatisation Commission would propose after in-house deliberations and consultations with financial advisers.

The companies cleared for divestment include the Oil and Gas Development Company Limited, Pakistan Petroleum Limited, Mari Gas, Pak-Arab Refinery, Pakistan State Oil, Sui Southern Gas Company Limited, Sui Northern Gas Pipelines Limited, Pakistan International Airlines, PIA-Roosevelt Hotel, New York, Pakistan Railways, Gujranwala Electric Power Company, Lahore Electric Supply Company, Islamabad Electric Supply Company, Faisalabad Electric Supply Company, Northern Electric Generation Company, Pakistan Steel Mills, National Power Construction Company and Pakistan National Shipping Corporation.

The financial sector entities selected for sale in the first phase include National Bank of Pakistan, First Women Bank, Small and Medium Enterprises Bank, National Investment Trust Limited, National Insurance Company Limited, Pakistan Reinsurance Company Limited, State Life Insurance Corporation and House Building Finance Corporation.

The Civil Aviation Authority, Karachi Port Trust, Port Qasim Authority and National Highway Authority are also on the list.

The government has made a commitment with the IMF to announce a strategy for the sale of 30 firms by the end of September as a benchmark for disbursement of second tranche of the IMF loan. Under the commitment, the government is to announce privatisation plans for remainder of total 65 entities by the end of 2013.

“We are developing medium-term action plans to restructure the PIA, Steel Mills and Railways. The action plans include partial privatisation of companies through initial or secondary public offering,” the government had told the IMF.

The cabinet has already approved a plan for divestment of 26pc shares along with management control of PIA by stripping non-viable components under a separate public sector enterprise — PIA2 by December.


31 enterprises up for sale - DAWN.COM

 

[arushbhai]

Good decision. These enterprises are infested with corruption, mismanagement and incompetency. I think 26% is still too little. Not sure how they came up with that number. I would say, it should be 50/50.

 

[Nishan_101]

ISLAMABAD: The government on Thursday approved to sell 26% or more shares of 31 state-owned entities including Pakistan International Airlines (PIA) and Pakistan Steel Mills, fulfilling a key condition of the International Monetary Fund under the $6.7 billion bailout programme.

The list was approved by Cabinet Committee on Privatisation (CCOP) three days after expiry of September 30 deadline set by the IMF. The deadline was given to provide a detailed plan for the respective entities with respect to turning around the loss-making firms.

The Privatisation Commission had tabled a list of 30 items but the CCOP, headed by federal finance minister Ishaq Dar, added Lakhra Power Plant at the eleventh hour. The privatisation of Lakhra Plant would be subject to approval of the Council of Common Interest, as the plant was not among the 65 entities that the CCI had earlier approved for privatisation and restructuring.

Last month, the Supreme Court of Pakistan had struck down the Lakhra Power Plant’s lease to M/s Associated Group for 20 years after finding faults in the lease agreement. The apex court had declared the lease as illegal and void and had directed the federal government to conduct an inquiry to fix civil and criminal liabilities on beneficiaries in accordance with law.

Among the approved 31 entities are PIA, PSM, Pakistan State Oil, Islamabad Electricity Supply Company and Gujrawanala Electricity Supply Company. The government has already announced to sell 26% stakes of the PIA to a strategic partner but the inclusion of the PSM was a surprising one.

Earlier, the government had announced to restructure the loss making entity instead of privatising it after the main opposition party in the National Assembly threatened to launch a country wide strike.

According to a Finance Ministry official, it was not necessary that the government will privatise all the 31 enterprises. He said that the approval was given for all of them and after Eid the Privatisation Committee will draw up a list comprising of half a dozen names among the 31 entities that could be privatised on a fast-track basis.

However, PIA has be privatised by December 2014 as part of the IMF condition.

The future of employees and political backlash to the privatisation will be key determinants for reaching a decision of full or partial privatisation, the official said.

The CCOP directed the Privatisation Commission to ensure that the interests of employees are protected at all cost, according to a handout of the ministry of finance.

He said it was also not necessary that the government will sell only 26% shares. There was possibility that depending on the entity, the government may sell majority shares to the private parties where the strategic partners refuse to take management with minority shares.

The CCOP approved four-pronged plan for these entities that revolved around off loading shares in the stock market, handing over management control to the private sector, divestment and selling assets where necessary.

The government will off load shares of Oil and Gas Development Company Limited, Pakistan Petroleum Limited, Pakistan State Oil, Habib Bank Limited and Untied Bank Limited, as these entities were already registered in the stock markets.

The CCOP may decide either to handover management control of National Insurance Company Limited or issue Initial Public Offering (IPO) at stock market. Islamabad Electricity Supply Company and Gujrawanala Electricity Supply Company would be offered for for strategic partnerships.

Despite approval for privatisation, there was possibility that the PSM could be restructured given the opposition to its privatisation, the officials said.

3G licence auctions

The committee also approved the decision to initiate working towards the auction of 3G licenses.

First meeting of the Advisory Committee for the auction of spectrum for the next generation of mobile services in Pakistan was presided over by Finance Minister Senator Mohammad Ishaq Dar.

After due consideration the committee finalised the recommendations for approval of the Prime Minister.

Minister of State for Information Technology and Telecom (IT&T), Anusha Rehman had earlier said that the government was committed to the transparent auction of 3G technology, which will not only upgrade mobile network infrastructure but will also generate revenue for the country.

Govt approves privatisation of Steel Mills, PIA – The Express Tribune

GoP should have firstly sell 11% shares in Stock Markets and then 39% shares to any other company...

 

[tarrar]

Good decision. These enterprises are infested with corruption, mismanagement and incompetency. I think 26% is still too little. Not sure how they came up with that number. I would say, it should be 50/50.

Do you know who are the ones who are going to buy the shares? & what makes you think there will be less or corruption when they all get privatized. A Govt. lead by professional robbers are only going to make life hell for Pakistan. These bastards have nothing to lose.

Only GOD knows what kind of Terms & conditions have these patwaris agreed on with IMF.

 

[faisal6309]

ISLAMABAD: The government on Thursday approved to sell 26% or more shares of 31 state-owned entities including Pakistan International Airlines (PIA) and Pakistan Steel Mills, fulfilling a key condition of the International Monetary Fund under the $6.7 billion bailout programme.

The list was approved by Cabinet Committee on Privatisation (CCOP) three days after expiry of September 30 deadline set by the IMF. The deadline was given to provide a detailed plan for the respective entities with respect to turning around the loss-making firms.

The Privatisation Commission had tabled a list of 30 items but the CCOP, headed by federal finance minister Ishaq Dar, added Lakhra Power Plant at the eleventh hour. The privatisation of Lakhra Plant would be subject to approval of the Council of Common Interest, as the plant was not among the 65 entities that the CCI had earlier approved for privatisation and restructuring.

Last month, the Supreme Court of Pakistan had struck down the Lakhra Power Plant’s lease to M/s Associated Group for 20 years after finding faults in the lease agreement. The apex court had declared the lease as illegal and void and had directed the federal government to conduct an inquiry to fix civil and criminal liabilities on beneficiaries in accordance with law.

Among the approved 31 entities are PIA, PSM, Pakistan State Oil, Islamabad Electricity Supply Company and Gujrawanala Electricity Supply Company. The government has already announced to sell 26% stakes of the PIA to a strategic partner but the inclusion of the PSM was a surprising one.

Earlier, the government had announced to restructure the loss making entity instead of privatising it after the main opposition party in the National Assembly threatened to launch a country wide strike.

According to a Finance Ministry official, it was not necessary that the government will privatise all the 31 enterprises. He said that the approval was given for all of them and after Eid the Privatisation Committee will draw up a list comprising of half a dozen names among the 31 entities that could be privatised on a fast-track basis.

However, PIA has be privatised by December 2014 as part of the IMF condition.

The future of employees and political backlash to the privatisation will be key determinants for reaching a decision of full or partial privatisation, the official said.

The CCOP directed the Privatisation Commission to ensure that the interests of employees are protected at all cost, according to a handout of the ministry of finance.

He said it was also not necessary that the government will sell only 26% shares. There was possibility that depending on the entity, the government may sell majority shares to the private parties where the strategic partners refuse to take management with minority shares.

The CCOP approved four-pronged plan for these entities that revolved around off loading shares in the stock market, handing over management control to the private sector, divestment and selling assets where necessary.

The government will off load shares of Oil and Gas Development Company Limited, Pakistan Petroleum Limited, Pakistan State Oil, Habib Bank Limited and Untied Bank Limited, as these entities were already registered in the stock markets.

The CCOP may decide either to handover management control of National Insurance Company Limited or issue Initial Public Offering (IPO) at stock market. Islamabad Electricity Supply Company and Gujrawanala Electricity Supply Company would be offered for for strategic partnerships.

Despite approval for privatisation, there was possibility that the PSM could be restructured given the opposition to its privatisation, the officials said.

3G licence auctions

The committee also approved the decision to initiate working towards the auction of 3G licenses.

First meeting of the Advisory Committee for the auction of spectrum for the next generation of mobile services in Pakistan was presided over by Finance Minister Senator Mohammad Ishaq Dar.

After due consideration the committee finalised the recommendations for approval of the Prime Minister.

Minister of State for Information Technology and Telecom (IT&T), Anusha Rehman had earlier said that the government was committed to the transparent auction of 3G technology, which will not only upgrade mobile network infrastructure but will also generate revenue for the country.

Govt approves privatisation of Steel Mills, PIA – The Express Tribune

PIA Zardari ki, Steel Mills Nawaz Sharif ki
After privatisation of PIA and Steel Mills, they will start generating revenue. It's a fact.