Govt plans to divest 10pc shares of OGDCL, other petroleum companies  

ISLAMABAD: Privatisation Minister Muhammadmian Somroo on Wednesday chaired a meeting of the Privatisation Commission Board to discuss matters pertaining to the divestment of government shares in Oil and Gas Development Company Ltd (OGDCL), Pakistan Petroleum Ltd (PPL) and Mari Petroleum Company Limited (MPCL).

During the meeting, which was attended PC board members Etrat Hussain Rizvi, Zafar Iqbal Sobani, Ashfaq Yousuf Tola, Khurram Shehzad, Engr MA Jabbar and Naseer Akhtar,  the participants mulled an option to sell 10pc shares of OGDCL (instead of 7pc decided earlier) after reviewing the market situation and a request from the petroleum ministry.

It also decided to sell around 10pc shares of PPL in the capital market, however, it delayed the process citing the current declines.

Meanwhile, the board considered the legal and other impending issues in the privatisation of Pakistan Engineering Company Ltd (PECO) and deferred further action till 20th August, keeping in view the commitments of resolution of MOI&P on 22 July meeting that was co-chaired by industries & production and privatization ministers. 

It also approved to sell the Jinnah Convention Centre for commercial purpose. The land alongside the convention centre could also be used for the same.

Moreover, the board also gave due consideration to the recent stability of crude oil prices in international markets, share price trends of OGDCL and its higher dividend yield ratio.

It approved few directions/guiding rules for transaction manager(s) under Part VII & Article (35) of the PC Ordinance. The guidelines will help transaction consultants in carrying out their responsibilities in a better manner.  

The board was also informed about the status of appointment/hiring of financial advisers on part of the Ministry of Privatization and in the light of the cabinet's decision. 

Speaking on the occasion, Soomro directed the board members to complete the subject transactions on time so as to avoid unnecessary delays.