The Government Of Pakistan Planning To Privatise Six Public Sector Enterprises
Dec 24 16
The government of Pakistan is planning to privatise six public sector enterprises. The government of Pakistan is planning to privatize five public sector enterprises including Kot Addu Power Company Limited (KASE:KAPCO), Telephone Industries of Pakistan, Pakistan Steel Mills Corporation (PVT) LTD., Mari Petroleum Company Limited (KASE:MARI), SME Bank Ltd. and Industrial Development Bank Limited in calendar year 2017. According to the plan, the expected date for privatisation of Pakistan Steel Mills is June 2017. At present, the Privatisation Commission is finalising the transaction structure of the Pakistan Steel Mills and as soon as it is finalised, it would be submitted with the Privatisation Commission Board and Cabinet Committee on Privatisation for its approval. The expected privatisation date for Kot Addu Power Company is also June 2017. The Privatisation Commission Board in its meeting held on July 11, 2016, recommended the transaction structure as presented by the financial advisor for the Kot Addu Power Company to Commission Board and Cabinet Committee. Expressions of Interest were invited from investors through national and international newspapers on July 15, 2016. At present, the transaction is under consideration of the Commission Board and Cabinet Committee. The privatisation of SME Bank is expected by March 2017 as financial advisors are working on a draft transmission structure, which would be submitted with the PC Board for its approval. The PC plans to publish advertisement, inviting expression of interests from prospective investors by end-December 2016. The Privatisation Commission intends to complete the privatisation process of SME Bank in the fiscal year ending March 31, 2017. The government is planning to privatise the Industrial Development Bank by end-September 2017 and an advertisement inviting Expressions of Interest from financial advisors would be published by the start of January 2017. The Privatisation Commission Board in its meeting held on July 11, 2016, also approved to initiate the privatisation of Telephone Industries of Pakistan, subject to provision of Telephone Industries Pakistan accounts till June 2015. However, the same are still awaited and the privatisation process is yet to be initiated for this reason. The Commission Board and Cabinet Committee in its meeting held on May 7, 2016, approved divestment of government shareholding in Mari Gas Petroleum Company either through the JV Partners which are Fauji Fertilizers and Oil and Gas Development Company Limited or stock market. The JV Partners, namely Fauji Foundation and Oil and Gas Development Company, are entitled to first right of refusal under the relevant clauses of participation and shareholders agreement. The Privatisation Commission will serve the transfer notice to JV Partners by December 2016. The Privatisation Commission intends to complete the divestment of Mari Petroleum Company by end March 2017.
CCOP Approves Privatization
May 9 16
The Cabinet Committee on Privatization (CCOP) has accorded approval on May 8, 2016 for divestment of the government's residual shareholdings in Kot Addu Power Co. Ltd. (KASE:KAPCO). The committee also approved sale of shares of Mari Petroleum Company Limited (KASE:MARI) through the domestic stock exchange or offering them to the shareholders. The approved proposals include Industrial Development Bank Limited and Telephone Industries of Pakistan in the priority list of entities for early privatization. The meeting had a detailed review of matters pertaining to Pakistan Steel Mills Corporation (PVT) LTD. (PSM) and decided that response from the Sind Government on Federal Government's offer to acquire PSM may be ascertained by June 10, 2016 so that further action in the matter could be taken.