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.
How would it look like if GOP shut the privatization Commission/Ministry today with all employees relieved on golden hand shake. All the Govt entities, in various sectors, like oil & gas, electricity, Pakistan Steel Karachi, PIA, financial sector,Railways and what not be leased out for varying periods say 20 -50 years by the ministry of Finance and likewise govt start getting billions of rupees per year lease money which could be used in the development of most neglected sectors like health and education.
I think GoP including provincial governments in totality be leases to the Chinese government for 20 years under CPEC regime.
It is beyond understanding that every govt. In thier tenure remained after best profitable institutions/assets. Instead of political influence in hiring of higher positions and withdrawing big amounts, the there is need to reorganize the companies on international standards. Every one knows the best performance of the ogdc, the ppl, and the Mari gas and thier profitability. Post effects of privatization of these institutions will lead to higher tariffs of gas, urea and power in future.
It is a govt policy matter, however, in my openion, disinvesting in OGDCL & other companies means that the Govt is in the need of money, and simultaneously it gives open hand to companie’s management for its decisions. Its bondings to Govt policies will reduce, and Govt will have some good money by this decision