Staff Reporter
Islamabad
Federal Minister for Privatization, Mohammad Mian Soomro has said that the Finance Bill for the FY 2020-21 has incorporated Rs100 Billion Privatization proceeds as part of the ‘Non-Tax Revenue Receipts’ for the FY 2020-21.
Chairing a meeting here on Sunday during which he was briefed about ongoing transactions, Muhammad Mian Soomro said that the Privatization Commission is fully committed and endeavored towards timely achieving the targets.
Significant progress was underway on various entities in the active privatization list, he added.
The Minister Privatization said that due diligence for various entities is in final stage, likewise the procurement process for appointment of Financial Advisors is also at advance stages for certain entities.
Transaction committee briefed the minister that for efficient implementation of privatization program PC is working on reforms including a computerized track record of the timelines through software to be kept for a closer monitoring of transaction processes.
The officials briefed that standardization and simplification of procurement of transaction advisory services and transaction documents to bring in uniformity, consistency, and transparency in the privatization process and effective management of the transaction process.
Due diligence for various entities is in final stage, likewise the procurement process for appointment of Financial Advisors is also at advance stages for certain entities, the committee said.
As per the latest implementation plan prepared by the Privatization Division, it is expected that transactions for privatizing Heavy Electrical Complex (HEC), both RLNG Plants: Haveli Bahadar Shah and Balloki is likely to be completed in second quarter of the current financial year. For Nandipur Power Plant, Financial Advisors are hired, and due diligence of FA is in progress and likely to be completed during the FY 2020-21, the committee told.
Moreover, Services int’l Hotel (SIH), Jinnah Convention Center (JCC), SME, First Women Bank Limited (FWBL) and House Building Finance Company Limited (HBFC) are scheduled for the next FY for completion. For SME, qualified bidders have been notified to participate in buyer side due diligence leading to bidding process.
The revival of Pakistan Steel Mills and to turn it into a profitable entity is one of the important agendas of current government and Ministry of Privatization.
In this regard another meeting was held, attended by PCB Board Member and all relevant stakeholders including Ministry of Industries and Production, Chairman Pakistan Steel Mills Board, Project Director, Financial Advisory Consortium and Director General, Privatization Commission and other Members of the Committee.
The Transaction Committee discussed the revised Transaction Structure for revival of Pakistan Steel Mills. Different options were considered for revival and Financial Advisory Consortium was directed by the Committee to further fine tune proposals.
Another session of the Transaction Committee has been scheduled on Tuesday to finalize the Transaction Structure.
The recommendations of the Committee will be presented to the PC Board and Cabinet Committee on Privatization for necessary approvals.
Though conducive economic and market conditions will also be closely evaluated in order to ensure maximum privatization proceeds for the Federal Government from these transactions. Moreover, Policy and Legal reforms will also be an important landmark envisaged for the upcoming FY 2020-21; this is likely to shape-up and further streamline the privatization process.
A meeting of key stakeholders on the issue of Receivable & Payables by E-Electric was also held at Privatization Commission, chaired by Minister of Privatization and attended by senior officials from Power Division, Finance Division, CPPA, NTDCL and Privatization Commission. The representatives of Govt. of Sindh, SSGCL and K-Electric also participated the meeting through video link.
The meeting deliberated on finalization of Arbitration Agreement to settle the K-Electric Receivables & Payables from various Public Sector entities. Many important aspects of the arbitration agreement were agreed by the Stakeholders. For few unsettled issues it was decided to have a follow-up meeting next week.
