Minister reviews progress on entities privatisation

Web DeskWeb Editor

07th Jul, 2021. 08:13 pm
Minister reviews progress on entities privatisation

ISLAMABAD: Federal Minister for Privatisation Mohammedmian Soomro chaired a meeting to review the current status and progress on the privatisation of entities in the active privatisation list.

The latest report regarding the progress made so far in the transaction of the state-owned entities (SOEs) was presented and various issues were discussed in detail.

The meeting discussed the federal government properties across Pakistan. The meeting was informed that 23 of the 27 properties were auctioned last year, while notices for hiring financial advisers for the expressions of interest (EoIs) for the remaining unsold properties are already published.

For Heavy Electrical Complex (HEC), five investors were prequalified and the transaction is most likely to be completed in the first quarter of the current fiscal year, for Jinnah Convention Center (JCC), the expected date of completion of the transaction is December this year.

The meeting was also informed that the issues relating to the Small and Medium Enterprises (SMEs), First Women Bank and House Building Finance Corporation (HBFC) are also taken up with the State Bank of Pakistan and other relevant fora.

The board for the First Women Bank Limited is nominated, which will update the financials and audit reports to proceed with the privatisation process.

Similarly, the meeting was informed that the privatisation of the Services International Hotel is at an advanced stage and after the approval of the revised reference price for the same from the Cabinet, the process for the auction will be initiated.

The privatisation of the National Power Parks Management Company Limited (NPPMCL), which is the major prospective transaction of the entire privatisation plan also came under discussion during the meeting.

The mostly issues associated with this complex transaction have been resolved, including land conversion, draft scheme for the demerger of NPPMCL into two companies, water usage, and for those remaining are actively pursued and a sub-committee to that effect had also been constituted.

Soomro said that the National Power Parks Management Company Limited is very important and “we are consistently and minutely following the tracks, which would lead us to the early completion of this transaction”.
The bidders, which were shortlisted last year, are again engaged to complete the buyers’ side due diligence after site visits, he said, adding that for the matters relating to the transactions of Nandipur Power Plant (NPP) and Guddu Power Plant relevant ministries are directed to resolve the issues on a fast-track basis.

For the revival of Pakistan Steel Mills Corporation (PSMC), the transaction structure was approved in December 2020, according to which a subsidiary was to be formed for transferring the identified assets and subsequent sale of the majority shares of the newly-formed subsidiary without transferring the ownership.

To reach at the eventuality certain corporate actions are required on the part of the stakeholders, which are pursued by the Ministry of Privatisation.

In the upcoming Privatisation Commission Board meeting, the salient features of the transaction structure of PSMC would be discussed, the minister said, adding that the focus is on the timely completion of the transactions, which were already extended due to the Covid-19 pandemic.

“We are resolved to compress the timelines for the transactions completion of the identified entities and [are] putting an all-out effort to improve the efficiency of these public sector entities, on the one hand, and reduce the fiscal burden on the economy, on the other.

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