Cabinet okays KESC sale, schools registration bill

Staff Report

ISLAMABAD: The federal cabinet on Tuesday approved the privatisation of Karachi Electric Supply Corporation (KESC) to Saudi company Hassan Associate Consortium, which includes the Saudi group Al-Jomiah.

The government will sell 73 percent of KESC shares. “The total proceeds and injection into the company will be over Rs 20 billion. The privatisation of KESC will lead to better quality service for the public,” an official statement said.

Minister for Privatisation Dr Hafeez Sheikh informed the cabinet about his meetings in the UAE regarding PTCL privatisation. He said as a follow-up of these meetings, he would meet his counterpart in the UAE immediately after Eid and try to finalise the PTCL transaction. The cabinet appreciated the opening of camps at five points along the Line of Control where relief and medical assistance would be available to survivors of the October 8 earthquake. “It will also facilitate meetings of divided families,” the statement said.

Foreign Secretary Riaz Mohammad Khan briefed the cabinet regarding the procedure agreed upon by Pakistan and India for facilitating the cross-LoC movement of earthquake victims, especially members of divided families.

The cabinet reiterated that Eidul Fitr celebrations would be toned down and there would be no official functions. Cabinet members will spend Eid visiting hospitals, schools, orphan homes, crisis centres and tent village.

-Daily Times

Saudi company Hassan Associate Consortium will face a very tough time
as KESC is full with corrupt employees

Hope they get some sense into it. GoP has actually sold it at a very low price so that might help.

Yep. KESC is corrupt as it comes. Maybe its the 2nd most corrupt after PTCL.

Hope they get some sense into it. GoP has actually sold it at a very low price so that might help.

Yep. KESC is corrupt as it comes. Maybe its the 2nd most corrupt after PTCL.

first of all, hassan associates is not a saudi company. that is faulty reporting by DT. its a pakistani karachi based company. the saudi group is the other one. secondly, the price is not cheap. you're talking about $340 million dollars. and thirdly, the KESC and PTCL corporations are actually not all that corrupt. i know atleast PTCL isnt. its probably one of the better managed companies in pakistan. the reason its being privatized is because telecommunication companies usually do better in private hands due to competition. as for the KESC, it too is not really corrupt. i'm not sure how people can assert this with so much confidence. the KESC is just very badly managed. its been terribly managed for roughly 20 years now. thats why it loses so much money. i am sure hassan associates will do a fine job. we'll see a much more profitable and healthy KESC in five years. thats my prediction.

FYI: the latest on PTCL is that it will be renegotiated with etisalat after eid. this should be good news for the company.

Do you know realize that GOP had done a very good job in getting such a high price from Etisalat for PTCL !

Although some posters were claiming otherwise i.e; why GOP was selling PTCL and that it should not be done ... I had still claimed that if the deal goes on than the real winner is Pakistan.

Today ETISALAT is trying it's level best to wiggle out of their commitment ... unfortunately due to the Earthquake GOP is not only occupied but also indebitted to UAE Govt. ..., due to which it can not really exert an all out pressure on ETISALAT ..

Anyhow .. they are trying their level best and i too sincerely hope that PTCL goes to ETISALAT at the earliest !