The Privatization Commission Board directed Privatisation Commission (PC) to obtain approval of the transaction structure and other related issues for Pakistan Petroleum Limited (PPL) from the Cabinet Committee on Privatisation (CCOP) and timely conduct its upcoming Secondary Public Offering (SPO). The PC Board chaired by Federal Privatisation Minister Ghous Bux Khan Mahar also gave approval to go ahead with the privatisation process of Pakistan Mineral development Corporation (PMDC)’s eight Salt and Coal Mines projects. The projects which got approval are Lakhra Coal Mines Jamshoro, Sor-Range Coal Mines, Quetta, Degari Coal Mines, Kalat, Sharigh Coal Mines, Sibi, Khewara Salt Mines, Jehlum, Warcha Salt Mines, Khushab, Kalabagh Salt mines, Mianwali and Jatta/ Bahaddur Khel/ Karak Salt Quarries, Karak. The Council of Common Interest (CCI) has already given approval for these transactions.
The PC board directed the Transaction Committee to complete the due diligence process after which financial advisors of interested parties to submit Statements of Qualifications (SoQ) to the Board in a week for finalizing the pre-qualified bidders for National Power Construction Commission. At least ten foreign and local interested parties have submitted Expressions of Interest (EOI) for the transaction structure of NPCC out of which party would found financially and legally eligible will participate in the bidding process.
The Cabinet Committee on Privatization (CCOP) and PC board have already approved the privatization of Transaction Structure of NPCC. The bidding process would be open to PC Board and CCOP will approve the bidding results, lead to the issuance of Letter of Intent to successful bidder.
PC expects to fetch $ 42 million by the sale of NPCC established in 1974 under the Ministry of Water and Power.
The successful bidder will be required to continue to operate the Company as a going concern. Up to 12 percent shares were allocated for employees of NPCC through the Benazir Employee Stock Option Scheme (“BESOS”).
The matter pertaining to the privatisation of Small and Medium Enterprise (SME) Bank also came under discussion and it was decided that the transaction committee should review the status and reinitiate the process.
The PC board further decided to devise investment policy for PC Funds in accordance with the Finance Division’s guidelines.
The meeting formulated various recommendations for Cabinet Committee On Privatisation (CCOP) and reviewed the status and progress of the ongoing and upcoming transactions. Earlier, the minutes of the previous meeting were approved.
All the above mentioned entities and all remaining entities including Pakistan Steel, Pakistan Railways, PIA, must be privatized as early as possible in a transparent manner to make these ventures profitable not only for the stake holders but contributing to the ate exchequer in billions of rupees as taxes, levies etc and also getting rid of Govt from liability of billions of rupees every year. It is none of job of Govt to run industries /commercial enterprises, nor are they capable of doing so. They need to confine themselves as regulators, facilitators.
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