Public offerings of OGDCL, PPL, PRC shares approved

ISLAMABAD: The Cab­inet Committee on Priva­tisation (CCoP) on Friday approved divestment of government stakes in Oil and Gas Development Company Ltd (OGDCL), Pakistan Petroleum Ltd (PPL) and Pakistan Reinsurance Company Ltd (PRC) through public offerings.

The CCoP meeting, chaired by Adviser to PM on Finance and Revenue Abdul Hafeez Shaikh, approved public offering of up to 7pc, 10pc and 20pc shares of OGDCL, PPL and PRC, respectively.

In addition, the CCoP also approved transaction structures of four public sector entities — Services International Hotel, Lahore, House Building Finance Company Limited, First Women Bank and Jinnah Convention Centre, Islamabad — besides giving its nod to start sell-off process for 747MW Guddu Power Plant.

CCoP clears transaction structures of four state-owned companies

The Privatisation Commission has already completed the transaction structure of these four entities, and Privatisation Secretary Rizwan Malik said that bidding of these entities would take three to four months, which means the process of privatisation would be completed by the end of 2020.

While taking decision on Guddu Power Plant, the CCoP directed all the ministries and entities for resolving issues of the plant in order to facilitate the privatisation process.

On Guddu Power Plant, Mr Malik said after the CCoP decision, financial advisers will be hired for the valuation of the entity, and this process may take a year. The plant is among the list of active privatisation programme of the present government.

On the issue of divestment of government shares in the OGDCL, PPL and PRC, he said that a period of six to eight months would be required for evaluation of share prices in case of favourable market conditions.

The Roosevelt Hotel owned by the PIA in New York is also on the agenda of CCoP meeting, and on the recommendation of the Aviation Division, the committee decided that updating of Deloitte reports should be held in abeyance till the revival of the economic and business environment in the Manhattan area of New York city.

The committee was briefed that the updation of Deloitte report will cost around $30,000 to $35,000 while the overall business environment prevailing in Manhattan is not favourable from the business point of view.

Meanwhile, the auction of government-owned properties located in different parts of the country will start by mid-September, sources in the Privatisation Commission said.