Privitisation process to contribute Rs100 billion revenue

ISLAMABAD: Privatisation Division has shortlisted ten entities that are scheduled to be sold out in the financial year 2020-21 to achieve budgeted non-tax revenue of Rs100 billion.

Federal Minister Mohammed Mian Soomro chaired a meeting which reviewed and approved the new schedule for privatisation of ongoing transactions. The schedule is subject to resumption of economic activities and improvement in market conditions once the pandemic situation is improved.

According to the new timeline, privatisation division is anticipating to sale out much delayed two RLNG power plants, 1223 MW Balloki Power Plant and 1230 MW Haveli Bahadur Power Plants, revival of Pakistan Steel Mills plan, SME bank Limited, services International Hotel Lahore and Jinnah Convention Centre, Islamabad in the second quarter of next financial year or by end of December 2020.

For revival of Pakistan Steel Mills, the transaction structure will be approved by  Cabinet Committee on Privatization (CCOP) in the first quarter of next financial year and expression of interests from bidders and pre-qualification of potential bidders will be finalized.

Other transactions scheduled to be completed in third quarter of next financial year are First Women Bank Limited, House Building Finance Company Limited, Heavy Electrical Complex (HEC) while Nandipur Power Plant privatisation is scheduled to be completed in the fourth quarter of next financial year.

At least eight transactions are temporarily on hold due to unfavourable market conditions and other pre-requisite formalities to address fundamental regulatory and legal issues pending with various ministries and management of entities.

The transaction committee discussed the revised transaction structure for revival of Pakistan Steel Mills. Different options were considered for revival and Financial Advisory Consortium was directed by the Committee to further finalise the proposals.

A meeting of key stakeholders on the issue of Receivable & Payables by E-Electric was also held at Privatisation Commission. The meeting deliberated on finalisation of Arbitration Agreement to settle the amount from various public sector entities.

Many important aspects of the arbitration agreement were agreed by the Stakeholders. For few unsettled issues it was decided to have a follow-up meeting next week.

The auction of the federal government-owned 28 properties, earlier scheduled to be carried out in April 2020 will now be carried out as soon as the existing restrictions ease out and market conditions are deemed suitable.