The Privatisation Commission on Monday said that one financial advisor has been hired and two more would be hired before end-March 2014 to undertake the privatisation of 31 identified entities. This was submitted to the Senate Standing Committee on Finance convened by Chairperson Nasreen Jalil.
The meeting was informed that afinancial advisor has also been hired for National Power Construction Company (NPCC) to finalise the sell-off end-June 2014. “We will also hire financial advisors for one electricity distribution company and one power generation company and will hire financial advisors for the sale of PIA Investment Limited’s non-strategic assets in New York and Paris by end-March 2014 (new structural benchmark),” the meeting was informed, adding that the sale of Islamabad Convention Center would be initiated after finalising PIA Investment Limited.
Meanwhile, the restructuring plan would continue and the government would hire professional chief executives and board members for those enterprises having corporate structure in line with the corporate governance rules. The government is also developing medium-term action plans to restructure Pakistan International Airlines (PIA), Pakistan Steel Mill (PSM) and Pakistan Railways (PR).
The meeting was further informed that the government would hire financial advisors by end-March 2014 to seek potential strategic private sector participation in PIA. The restructuring plan includes stripping the non-core activities of PIA under a separate public sector enterprise, PIA2, servicing the guaranteed past loans of PIA2, applying a voluntary “handshake” plan for the excess workforce and eventual liquidation by end-June 2014.
“PIA will retain some liabilities that it can undertake, streamline the workforce, and will receive capital injection from the government. We plan to privatise 26 percent of PIA’s shares to strategic investors by end-December 2014 (structural benchmark).
In the meantime, PIA will continue leasing more efficient airplanes and rationalising routes,” the Planning Commission added.
About Pakistan Steel Mills, the meeting was informed that the professional board of PSM has been appointed and financial advisor would be hired by end-March 2014 to prepare a comprehensive restructuring plan and seek potential strategic private sector participation in the company. Senior officials of the Privatisation Commission said that the main objective of the privatisation is to put national resources and assets to optimal use particularly to unleash the productive potential inherent SOEs. The policy specifically aims at enhancing the value of government shareholding, maximisation of profits, modernisation and upgradation of SOEs, exploration and creation of new assets as well as management and technological transfer benefits.
Source: Business Recorder Report