ISLAMABAD-Cabinet Committee on Privatisation (CCoP) on Friday has approved the privatisation of eight public sector entities including divesting the shares of Oil and Gas Development Company Limited (OGDCL).

Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh chaired the meeting of the Cabinet Committee on Privatisation (CCOP). The CCOP approved the “Divestment of up to 7 per cent Government owned shares in OGDCL” through public offerings and directed to initiate the process of appointment of Financial Adviser for the process. CCOP also gave approval for the privatisation of Guddu Power Plant (747 MW) and gave directions to all the divisions/entities for resolving issues of Guddu Power Plant to facilitate the privatisation Process. Divestment of up to 10 per cent of GOP’s shares in PPL through Public offerings was also approved by CCoP.

Transaction Structures for the (a) Privatisation of Services International Hotel (SIH) Lahore, b) Jinnah Convention Centre c) Divestment of up to 20 per cent shares of Pakistan Reinsurance Company Limited held by GoP  d) House Building Finance Company Limited (HBFCL) and e) First Women Bank limited were also approved by CCoP. In case of Jinnah Convention Centre and Services Intl Hotel Lahore the status of these entities will be converted into commercial from amenities for the highest possible valuation. The subject conversion proposal will be submitted for approval of the Federal Cabinet. According to the details, the government would sell equity stake of up to 100 per cent along with management control in HBFCL. The CCoP had approved to sell 82.64 per cent shareholding of the government in FWBL. 

Meanwhile, the sale of SIH Property in Lahore would be through a bidding process. The area of the property to be sold is 15 Kanal, 3 Marla and 113 Square Feet with 4 storey structure having built-up area of 93,850 square feet. The property is to be sold as commercial property. The government would divest 20 per cent shares in the Pakistan Reinsurance Company Limited, which will reduce overall government shareholding to 59 per cent. The proposed divestment will allow the government to retain management control of the company. Government intends to sale JCC property through competitive bidding. The existing Jinnah Convention Centre structure will remain intact and prospective investors would be allowed to develop the vacant land.

On the recommendation of the Aviation Division, CCoP directed that on Hotel Roosevelt Manhattan, updating of M/s Deloitte reports may be held in abeyance till the revival of the economic and business environment in Manhattan, New York. The report updation will also cost fee of 30k-35k while the overall business environment prevailing in Manhattan is not favourable (as of lesser use now), it was briefed to the CCoP. Privatisation Division had shortlisted 10 entities, which are scheduled to be sold out in financial year 2020-21 to achieve budgeted revenue of Rs100 billion. Privatisation Commission is anticipating to sale out much delayed two RLNG power plants 1223 MW Balloki Power Plant and 1230 MW Haveli Bahadur Power Plants, revival of Pakistan Steel Mills plan, SME bank Limited, Services International Hotel Lahore and Jinnah Convention Centre, Islamabad in the second quarter of next financial year or by end of December 2020.The government had budgeted Rs150 billion from privatisation programme in last fiscal year. However, it failed to generate any amount due to COVID-19 that had halted the privatisation programme.