Pakistan aims to earn $ 4 billion though privatisation of SOEs

ISLAMABAD: Pakistan is planning to raise $ 4 billion by selling some key state-owned enterprises, including national carrier PIA, in the capital markets and foreign buyers by the end of this year to repay its debt and ameliorate poverty in the country.

"Pakistan aspires to earn $ 4 billion revenue by the end of this year by selling shares of some important state-owned enterprises, including Oil and Gas Development Company Limited (OGDCL)," said Muhammad Zubair, Head of Privatisation Commission of Pakistan today.

He said the sales of OGDCL shares were initiated on November 5 and the sale is expected to generate about $ 730 million.

"The job is risky and decisions are difficult but we aim to do so for the country, without catering to anybody's personal needs," he said.

Zubair discussed the prospects of unbundling Steel mills and selling surplus land for more profitable ventures.

The crippled enterprise's only hope to be revived is through privatisation and the commission has decided to divest 42 per cent of the shares in the capital market, he said.

The privatisation of the national flag-bearing Pakistan International Airlines (PIA) is planned to be carried out in two separate units, with the core business being transferred to some mega-international airline, he added.

According to him, a go-ahead has been given by the government to appoint a Financial Adviser to complete the process.

The current political scenario of the country does hamper the investors' confidence, but the government is determined to carry on the process, he said adding that next year the focus would be directed towards divesting the power generating companies.

Zubair assured that the process of privatisation would be transparent, giving equal opportunity to all and taking all stakeholders in confidence.

He said as by the conditions laid by the International Monetary Fund's $ 7.3 billion bailout package, 90 per cent of the proceedings would be used to repay the debt whereas the remaining 10 per cent would be directed towards poverty reduction in the country.