ISLAMABAD - The Ministry of Planning, Development, and Special Initiatives has opposed the proposal to transfer 322,460,900 shares of Oil and Gas Development Company Limited (OGDCL) to the Ministry of Energy (Petroleum Division) and instead recommends transferring them to the Pakistan Sovereign Wealth Fund.
In response, the federal government has established a committee under Deputy Prime Minister and Foreign Minister Ishaq Dar to examine the legal aspects of the OGDCL share transfer and submit a report within seven days, official source told The Nation. The Privatisation Ministry had sought the Cabinet Committee on Privatisation (CCoP) approval to transfer 322,460,900 OGDCL shares from the Privatisation Commission’s CDC account either to the Pakistan Sovereign Wealth Fund or the Ministry of Energy (Petroleum Division). OGDCL was included in the Privatisation Programme for early implementation by CCoP on October 3, 2013. Consequently, the Privatisation Commission (PC) Board appointed a consortium as a Financial Advisor for the divestment of up to 10 percent of government shares in OGDCL in April 2014.
However, on November 8, 2014, CCoP decided to postpone the divestment due to inadequate market response, and the shares remained with PC. On May 21, 2021, CCoP approved a proposal from the Petroleum Division not to divest the shares, a decision ratified by the Federal Cabinet on June 8, 2021. A subsequent summary presented to CCoP on February 7, 2024, sought approval to transfer the shares from PC’s CDC account to the Ministry of Energy. CCoP directed the Law and Justice Division to provide input on the matter, and the decision was ratified by the Federal Cabinet on February 15, 2024.
The Pakistan Sovereign Wealth Fund (PSWF) Act 2023, effective August 4, 2023, stipulates that all assets listed in Schedule-I, including those of OGDCL, should be transferred to the fund as the ultimate owner. A summary presented to CCoP on May 10, 2024, proposed transferring the shares to the Ministry of Energy. CCoP then sought comments from the Law and Justice Division regarding the transfer of ownership either to the Fund or the Ministry. The Law and Justice Division advised that the federal government has sole discretion in determining the transfer or placement of the shares. The Ministry of Planning, Development, and Special Initiatives contends that the government’s shareholding of 3,657,079,419 shares has already been transferred to the Pakistan Sovereign Wealth Fund, making OGDCL a subsidiary of the Fund. The ministry recommends transferring the remaining 322,460,900 shares to the Fund to ensure consistent ownership under a single entity rather than transferring them to the Ministry of Energy.
On August 13, 2024, the Federal Cabinet established a committee to oversee the transfer of OGDCL shares held by the Privatisation Commission. The committee, chaired by Deputy Prime Minister and Foreign Minister Ishaq Dar, will include the Minister for Finance and Revenue, the Minister for Economic Affairs, the Minister for Petroleum, and the Minister for Privatisation as members. The committee’s Terms of Reference (ToRs) are to review the legal position and propose a course of action for transferring the OGDCL shares held by the Privatisation Commission. The Privatisation Division will provide secretarial support, and the committee is expected to deliver its report within seven days for consideration by the Prime Minister and the Cabinet.
