Focused on timely completion of transactions of SOEs: privatisation minister

ISLAMABAD: Federal Minister for Privatisation Muhammad Mian Soomro said that the ministry is focused on the timely completion of the transactions of the state-owned enterprises (SOEs) which were already extended due to the COVID-19 pandemic, ARY News reported on Wednesday.

Muhammad Mian Soomro chaired a review meeting regarding the current status and progress in the privatisation of national entities.

He further said, “We are resolved to compress the timelines for the transaction completion of the identified entities and 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.”

The latest progress report in the transaction of state-owned enterprises (SOEs) was presented and various issues were discussed in the meeting.

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The report stated that 23 out of 27 federal government properties across Pakistan were auctioned last year while Expressions of Interest (EOI) are already published for hiring the financial advisors for the remaining unsold properties.

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

The matters relating to SME, First Women Bank and House Building Finance Corporation (HBFCL) were also taken up with the State Bank of Pakistan and other relevant forums; the board for first women bank is nominated which will update the financials and audit reports to proceed with the privatisation process, the participants were told.

“The privatisation of Services International Hotel was at an advanced stage; after the approval of the revised reference price for the Services International Hotel (SIH) from the Cabinet, the process for the auction will be initiated.”

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The privatisation of National Power Parks Management Company Limited (NPPMCL) which is the major prospective transaction of the whole privatisation plan is also discussed in the meeting, according to a press release.

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

Soomro said, “NPPMCL 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.”

Regarding the transactions of Nandipur Power Plant (NPP) and Guddu Power Plant, concerned ministries were approached and the federal minister directed to resolve the issues on a fast track basis.

READ: GOVT PRESENTS LIST OF NATIONAL ENTITIES SLATED FOR PRIVATISATION

For the revival of Pakistan Steel Mills (PSM), 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 majority shares of the newly formed subsidiary without transferring the ownership.

In order to reach the eventuality, certain corporate actions are required on part of the stakeholders, which are being pursued by the Ministry of Privatisation.

In the upcoming Privatisation Commission (PC) board meeting, the salient features of the transaction structure of PSM will be discussed.