OGDCL, PPL: FA to be hired to implement divestment plan

ISLAMABAD: The Cabinet Committee on Privatisation (CCoP) on Friday approved planned divestment of seven percent government-owned shares in Oil and Gas Development Company Limited (OGDCL) and 10 percent shares in Pakistan Petroleum Limited (PPL) through public offerings.

The CCoP meeting presided over by Adviser to Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh also directed the Privatization Commission to initiate the process of hiring of Financial Adviser (FA) that the divestment process could be completed as early as possible.

An official said the process of privatization remained stalled due to coronavirus pandemic and now as the situation was improving the government wanted to reinitiate it for early completion, at least divestment of shares.

The meeting also gave approval to the privatization of Guddu Power Plant (747 MW) and gave directions to all the divisions/entities for resolving the issues of Guddu Power Plant to facilitate the privatization process.

The CCoP also approved five transaction structures: (a) Privatization of Services International Hotel, Lahore; (b) Jinnah Convention Center; (c) Divestment of up to 20 percent shares of Pakistan Reinsurance Company Limited held by government, House Building Finance Company Limited and; and (e) First Women Bank Limited.

The privatization of these entities has been on the list for quite some time without any visible progress. On the recommendation of the Aviation Division, the CCoP directed that updating of M/s Deloitte reports on Hotel Roosevelt may be held in abeyance till the revival of the economic and business environment in Manhattan, New York.

The report updation will also cost a fee of 30,000 to 35,000, while the overall business environment prevailing in Manhattan is not favorable (as of lesser use now), it was briefed to the CCoP.

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