http://www.thenews.com.pk/daily_detail.asp?id=7895


Privatisation proceeds reach all-time high



By our correspondent

KARACHI: Federal Minister for Privatisation & Investment, Zahid Hamid has said that privatisation proceeds has reached all-time high during the current financial year.

Addressing a meeting of the Privatisation Commission Board at Islamabad on Thursday he said that up till April 2006, nine transactions had been completed for a total sale price of Rs218 billion, out of which a sum of Rs118 billion had already been realised. Last year (2004-05), eleven transactions were completed for a total sum of Rs43 billion, he stated.

Zahid Hamid said that Pakistan State Oil (PSO) and National Investment Trust Limited (NITL) were also likely to be privatised before June 30, 2006, which would further increase the proceeds. All these proceeds would of course be utilised for poverty alleviation and debt retirement in accordance with the law, he added.

The minister further stated that all prescribed rules, regulations and formalities would be observed and nothing would be sold in a haste in order to ensure open, fair and transparent transactions and to maximise sale proceeds for national assets.

He said that the economic reforms introduced in Pakistan by Shaukat Aziz as Finance Minister, which rotated on three main pillars of deregulation, liberalization and privatization, were appreciated the world over and cited as role model for the region at the World Economic Forum held on May 20-21 at Sharm-el-Shaikh, Egypt.

He said that the economic reforms had been institutionalised by the government through the Fiscal Responsibility and Debt Limitation Act 2005.

The minister said that the fiscal debt, which averaged nearly 7 per cent of GDP in the 1990s, had declined to 3.3 per cent in 2004-05.

Moreover, public debt to GDP ratio had reduced from disastrous 90 to 100 per cent (approx) in the 1990s to 61.7 per cent in 2004-05 and was expected to further reduce to under 60 per cent this year, he stated.

The PC board approved the recommendations of the pre-qualification committees relating to pre-qualification of parties for the privatisation of National Investment Trust Limited (NITL), Faisalabad Electric Supply Company (FESCO) and National Power Construction Company (NPCC).

The meeting also reviewed the progress of the privatisation process of Lyallpur Chemical and Fertilizers Ltd, and Lasbella Textile Mills. The meeting also formulated its recommendations for the Cabinet Committee on Privatisation (CCOP) regarding various ongoing entities.

Shaikh Ikramullah, Secretary Privatisation Commission, members of the Board of Privatisation Commission, senior officials of the respective ministries and departments attended the meeting.