The government has decided to float the shares of the profit-generating power distribution company – Gujranwala power distribution company on Pakistan Stock Exchange (PSX) through an IPO.The attempt is to meet the current budget deficit.The committee also recommended the inclusion of House Building Finance Corporation (HBFC) and First Women Bank Limited (FWBL) in the “Privatisation Program for Early Implementation”.
The Cabinet Committee on Privatisation (CCOP) met on Friday where the transfer price for the divestment of the remaining 18.3% of government shares in Mari Petroleum Company was also approved. The transfer price has been finalised at a 5% discount to the closing stock price on the day prior to which the transfer notice would be served to the joint venture partners, reported a national daily. The divestment will either be through the joint venture partners (Fauji Foundation and OGDCL) or through the domestic stock exchanges. Fauji Foundation has a 40% stake in MPCL while OGDC currently holds 20% of the company shares.
The Committee under the chairmanship of the Finance Minister Ishaq Dar, also deliberated and approved the transaction structure for the privatisation of SME Bank in line with the guidelines of the SBP.
The committee considered the strategic sale of KAPCO with the instructions to Privatization Commission and Ministry of Water and Power to complete all pending formalities before the final approval.
The request of delisting of Shalimar Recording and Broadcasting Company Limited from the privatisation program made by the Ministry of Information and Broadcasting has been accepted by the CCOP committee.
The Finance Minister has strong faith that the CCOP decisions will pave way for economic growth of the country and improve the financial standing of the entities. Stress has been laid on the transparency of the procedures and welfare of the workers.
