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Govt to raise Rs273b by privatising eight state institutions

Govt to raise Rs273b by privatising eight state institutions

ISLAMABAD: The Finance Ministry has high expectation of getting Rs260.9 to Rs273 billion by privatising of eight government entities in the current fiscal year.

The government also eyed on significant increase in proceeds from the privatization of remaining three generation companies (GENCOs) and six power distribution companies (DISCOs). An official source at the Finance Ministry told this scribe that the government had eight state run organizations on its privatisation list which included Oil and Gas Development Co. Ltd (OGDCL), Allied Bank Limited (ABL), Habib Bank Limited (HBL), National Power Construction Corp, Northern Power Generation Co. Limited, Faisalabad Electric Supply Co Limited, Heavy Electrical Complex and Convention Centre.

“Government expects revenue of Rs 79.2 billion out of the privatisation of OGDCL, Rs 14850 million from ABL, Rs 118.8 billion from HBL and Rs 1.98 billion from the privatisation of National Power Construction Corporation,” the source said while giving facts about the expectations of the government.

Similarly, the source said that government had an eye on revenue of Rs 14.85 to 17.33 billion from the privatisation of Northern Power Generation Co. Limited Rs 19.8 to 24.75 billion from Faisalabad Electric Supply Co. Limited, a sum of Rs 1.48 billion from Heavy Electrical Complex as well as Rs 9.9 to 14.85 billion from the privatization of Convention Centre. The source said that the Finance Ministry was following a plan to divestment of 100 percent government shares in the privatization of Northern Power Generation Co. Limited and Heavy Electrical Complex while divestment of minimum 51 percent shares along with transfer of management control of Northern Power Generation Co Ltd and Faisalabad Electric Supply Co Ltd whereas Convention Centre would be privatized on the base of share price on 04-08-2014..

“These are expected estimated proceeds, actual receipts may vary depending upon the share price/ valuation at the time of divestment/ privatization and approval of the Privatization Commission (PC) and Competition Commission of Pakistan (CCoP),” the source said.

It is pertinent to mention here that government is seeking foreign investment in different sectors like energy, oil and gas, privatisation, Information Technology and telecommunication, roads and infrastructure, agriculture and livestock, mining and minerals, financial sector and the capital market. Similarly, there is also need to improve our ease of doing business index and our global competitiveness. Here the Board of Investment in collaboration with our Finance Ministry, the World Bank and IMF is working on changing the rules so that investments for you become fast and easy.