ISLAMABAD - The Cabinet Committee on Privatization (CCoP) has approved the privatisation of National Power Parks Management Company (NPPMCL) and Mari Petroleum Company Ltd.
The CCoP meeting, which was chaired by Finance Minister Asad Umar, discussed the privatization programme. Secretary Privatization Division gave the meeting an update on privatisation process of public sector entities on the active privatization list including RLNG Power Plants (Balloki and Haveli Bahadurshah) under National Power Parks Management Company (NPPMCL), Lakhra Coal Mines and Services International Hotel. Matters relating to divestment of Govt’s residual shares in Mari Petroleum Company also came under discussion.
With a view to facilitating simultaneous and smooth privatization of both RLNG plants, the CCoP gave its nod of approval for privatization of the NPPMCL. The state-run National Power Parks Management Company Ltd (NPPMCL) owns and operates the re-gasified liquefied natural gas-based power plants, including 1,233 megawatts Balloki Power plant and another 1,230MW Haveli Bahadur Shah power plant. The Council of Common Interests (CCI) had already approved the proposed privatisation of two newly-established RLNG-based power plants with production capacity of more than 2,400 megawatts.
The CCoP also accorded go ahead to divest residual govt shares of 18.39% in Mari Petroleum Company Ltd. The government intends to divest up to 18.39 per cent of its shareholding in Mari Petroleum to foreign and domestic institutional investors, high net worth individuals and the general public through a secondary public offering on the Pakistan Stock Exchange. Mari Petroleum is a fully integrated exploration and production company, currently managing and operating the country’s largest gas reservoir at the Mari field in Ghotki, Sindh. Fauji Foundation holds a 40 percent shareholding in the company along with management rights while the government, Oil and Gas Development Company and the general public hold 18.39pc, 20pc and 21.61pc of shareholding, respectively. It is a listed company and its shares are quoted on the stock exchange.
In case of Lakhra Coal Mines, the CCoP directed that since the matter is subjudice its privatization process may be pursued only after decision by the Supreme Court. The CCoP had in October approved the privatisation of Lakhra Coal Development Company as part of the active privatisation programme.
The CCoP has also considered the privatization of Services International Hotel. Sources said that ministry of commerce has said that due to depressed real estate market conditions, the property might not get a favourable response from investors. The CCoP also noted the updated position on KE as shared by the Secretary Privatization.