Minister stresses completion of priority transactions under privatisation programme

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ISLAMABAD: Privatisation Minister Mohammedmian Soomro was apprised on Tuesday that substantial progress had been made to conclude the transactions of National Power Parks Management Company Limited (NPPMCL), the SME Bank, the Jinnah Convention Centre, the Services Int’l Hotel (SIH) and sale of 28 properties within the current fiscal year.

He was further informed that due to the spread of COVID-19, the timelines had to be rescheduled.

The briefing was given in a meeting chaired by the minister and attended by the Secretary Privatisation Commission and other concerned officers to review progress on privatisation programme with special focus on some of the priority transactions, said a news release.

Targets were also set for the FY21 during the meeting.

Soomro was apprised that despite lockdown situation, transactional activities continued through technological means and pre-qualified bidders for NPPMCL remained engaged and they were provided necessary information and assistance in completion of buyer side due diligence.

However, it was noticed that pandemic situation has changed the overall macroeconomic outlook of the global economies where Pakistan is not an exception and this has affected overall privatisation programme.

It is worth mentioning that the transaction structure of the Pakistan Steel Mills is under consideration in PC and would be discussed in the meeting of the Transaction Committee on May 14.

The minister reiterated that revival of PSM is also one of the priorities of the govt to minimise losses being borne out of public exchequer.

The minister was further informed that the financial adviser hired for the purpose has completed due diligence of the entity and reports received in this regard are under review by concerned stakeholders.

Based on due diligence, the adviser has formulated a draft transaction structure for inviting EOI from the potential investors.

The draft transaction structure is to be discussed during meeting of the transaction committee in this week. TC structure will be placed with the PC’s board and CCOP for approval.

Soomro asked the concerned to expedite the process for early conclusion of the revival plan of PSM.

Moreover, the auction of 28 properties owned or controlled by the federal government would be conducted when COVID-19 situation gets better.

The Due Diligence Reports of Higher Electrical Complex’s (HEC) transaction are being finalised and transaction structure is being developed by the FA Consortium.

The minister however, asked the concerned staff to keep up the pace and complete all requisite formalities leading to successful completion of transactions once market conditions are improved and normalcy rebound in the investment landscape.

 

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