Soomro reviews progress on privatization program

F.P. Report

ISLAMABAD: Federal Minister for Privatization, Mohammed Mian Soomro reviewed the progress on privatization program with special focus on some of the priority transactions and targets set for the Fiscal Year 2020-21.

The meeting was also attended by Secretary Privatization Commission (PC) and other concerned officers to discuss the future Plan of action, said a press issued by Ministry for Privatization here on Tuesday.

It was apprised to the minister that substantial progress was made to conclude the transactions including National Power Parks Management Company Limited, (NPPMCL), SME Bank, Jinnah Convention Centre, Services Int’l Hotel (SIH) and sale of 28 properties within current FY but due to outbreak of COVID 19 the timelines had to be rescheduled.

A revised schedule had also been shared with PM office, the press release said.

It was apprised to the minister that despite lockdown situation transactional activities were continued through technological means and prequalified bidders for NPPMCL remained engaged and they were provided necessary information and assistance in completion of buyer side due diligence.

However, it was noticed that pandemic situation has changed the overall macroeconomic outlook of the global economies where Pakistan is not an exception and this has affected overall privatization program, press release said.

It is worth mentioning that the Transaction structure of Pakistan Steel Mills (PMC) is under consideration in the Privatization Commission and will be discussed in the meeting of Transaction Committee on Thursday 14th May 2020.

The minister reiterated that revival of PSM is also one of the priorities of the government to minimize losses being borne out of public exchequer.

The minister was updated that financial advisor hired for the purpose has completed due diligence of the entity and reports received in this regard are under review by concerned stakeholders.

Based on due diligence FA has formulated a draft transaction structure for inviting EOI from the potential investors. The draft transaction structure is to be discussed during meeting of the transaction committee in this week.

TC structure will be placed with PC board and CCOP for approval. The Minister urged the concerned to expedite the process for early conclusion of the revival plan of PSM.

Moreover, the auction of 28 properties owned or controlled by the Federal Government will be conducted as and when Covid 19 situation gets better.

The Due Diligence Reports of Higher Electrical Complex’s (HEC) transaction is being finalized and transaction structure is being developed by the FA Consortium.

The federal minister however impressed upon the concerned staff to keep up the pace and complete all requisite formalities leading to successful completion of transactions once market conditions are improved and normalcy rebound in the investment landscape.