Finance Minister Senator Mohammad Ishaq Dar chaired a meeting to review the progress made by the Privatization Commission in the divestment of entities already approved by the Cabinet Committee on Privatization (CCoP) at the Finance Ministry Tuesday.
Minister of State for Privatisation Muhammad Zubair, in a detailed briefing, explained that the commission has been working with total commitment to follow the timelines given by the CCoP to complete the transactions already approved by the committee. He updated the Finance Minister on the progress being made so far in the regard.
He said that, as the first step towards divestment of shares in state owned entities, PPL and UBL have already been sold through the capital markets. The results are very encouraging and there has been an over whelming response in the capital market. He informed that the work on the OGDCL transaction is being done on the fast track and the transaction will be completed by September, 2014.
The finance minister said that the recently completed successful transactions of shares in UBL and PPL have resulted in enhancing investors’ confidence in the reform policies of the government. He emphasised that during the whole process Privatization Commission will have to maintain transparency and fairness at all levels of the transaction. He added that there will be no compromise on two basic principles; transparency and fair price for the transaction. He stressed that no GOP share will be sold for less. He added that, we should strive for maximizing participation from both foreign and domestic investors and fetch in the best price possible for our country.
The Finance Minister also said that the reform process undertaken by the government will also help in the successful and transparent completion of the process as Pakistan has already made successful entry in the international capital markets. He observed that with the successes of oversubscribed Eurobond, auction of spectrum licenses and now in sale of UBL and PPL shares, international investors have more confidence in the financial standing of our country.
The federal minister also directed that while putting in place credible plans for restructuring and divestment, due process should not be compromised. He said that the whole process will also provide PSEs the incentive and flexibility to pursue long term investment plans thus liberating the government from micro-management of PSEs.
The meeting was also attended by Rana Assad Amin, Advisor to Finance Ministry, Special Assistant to Finance Minister, Shahid Mahmood and senior officials of the Privatization Commission and the Ministry of Finance.
