ISLAMABAD: The government has approved the transaction structure for divestment of 96.6% shares of the Heavy Electrical Complex (HEC).
The decision was made in a meeting of the Cabinet Committee on Privatization (CCoP) chaired by Adviser to the Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh.
CCoP also directed the Ministry of Industries and Production for the amicable and earliest resolution of issues related to regular employees of HEC. The committee also instructed the Power Division (Ministry of Energy) to consider extending the validity of Type Testing License of Heavy Mechanical Complex.
CCoP also constituted a committee chaired by Minister for Industries and Production Hammad Azhar to improve upon the transaction structure for Pakistan Steel Mills. The committee members include Chairman Board of Investment, Chairman Privatization Commission, Secretary Finance, Adviser to PM on Austerity and Institutional Reforms and SAPM on Energy,
It also approved the recommendation of the Privatization Commission Board to allowing opening, operating and closing accounts banks for privatization transactions and other operations in compliance with State Bank of Pakistan (SBP) guidelines.
The financial adviser appointed by the Privatization Commission (PC) for the sale of properties owned or controlled by the federal government briefed on the bid price for the auctioned properties and sought guidelines for the remaining part of the transactions.
Earlier the Economic Coordination Committee (ECC) was briefed that out of the 27 properties, the bid price for 23 has been received. CCoP directed the financial adviser to recommend a way forward on two unsold properties in Multan and Rahim Yar Khan. The committee also directed to engage the chief secretaries of KP and Punjab to resolve pending issues relating to two properties in Swat and Lahore
CCoP also constituted a committee to look into various sectoral issues related to the privatization of National Power Parks Management Company Limited. The committee will meet within week to deliberate on the way forward to specify issues and set up guidelines.
The meeting also approved the transaction structure for the Privatization of the House Building Finance Company (HBFC). The decision was already taken in the meeting on August 21 but not ratified by the cabinet for want of additional information regarding the profitability and other issues of the entity.
The Privatization Commission briefed that if the transaction proceeds ahead, investors can bring in capital, operational expertise, capacity enhancement of HBFC and new product development, which would eventually enhance its profitability and market share in housing mortgage for middle and low-income groups of the society.
