Privatization in Pakistan is aimed to achieve the following:-

1- Enhance the quantity and quality of goods and services
2- Strengthen public finances
3- Broaden and deepen capital markets
4- Reduce opportunities for corruption.


Corporation Total Units Units Privatized/ Disposed Leftover Units
FCCCL 13 13 --
NFC 7 2 5
PACO 14 11 3
PIDC 9 9 --
IPI 2 -- 2
SCCP 15 11 4
SEC 12 6 6
PERAC 3 3 --
PAKISTAN STEEL 2 -- 2
GCP 26 21 5
RCP 15 15 --
USC 1 -- 1
TOTAL: 119 91 28

Major projects/companies which are due for privatization are:-

Pakistan Telecommunications Company (PTCL)
Banking Habib Bank
Oil & Gas OGDC, PPL andPSO i.e
Oil & Gas Development Corporation.
Pakistan Petroleum Limited
Pakistan State Oil Co.
Power Vertically integrated KESC i.e Karachi Electric Supply Corporation.
Industries Two large fertilizer units and other smaller units

Steps Taken For Effective Privatization

1- Legal framework (Privatization Commission Ordinance, 2000) established for investors' comfort, assured transparency, and increased accountability.
2- 90% of the privatization proceeds will be used for debt retirement and 10% for poverty alleviation.
3- Privatization Commission(PC) has acquired specialized expertise and business acumen from the private and public sectors.
4- Stature of PC has been improved by making it a Ministry.
5- PC's comprehensive programme for privatization stands approved
6- Regulatory agencies for power, gas and telecommunications established alongwith the Securities & Exchange Commission of Pakistan
7- Economy under constant deregulation through price and import liberalization.
8- Communications with stakeholders have been improved.

Stages of Privatization

PTCL: Expressions of interest for strategic sale were invited evoking response from 11 parties till 30.6.2001. Due diligence by bidders has been delayed due to events of September 11,2001.
HBL: This banks has transferred its non-performing loans to CIRC (Corporate Industrial Restructuring Corporation), have closed down unprofitable branches, and have reduced overheads at headquarters. Corporate tax has also been reduced from 58 to 50%.
OGDC/PSO/PPL: For the first two Financial Advisors (PAs) have been appointed while FA for PPL is underway. Likewise, an FA for the Sui Gas Companies is also in the process of hiring. The Oil companies will go to market by June 2002 and the Gas companies by December, 2002. Sale of minority stake holding and bidding therefor in 9 oil & gas fields delayed due to events of September, 2001.
Power: WAPDA's power assets have been unbundled in to 3 generation companies, 8 distribution companies, and one transmission company. Privatisation Adviser has been appointed for initiation of the privatisation process. They would finish their job by July, 2002. Privatization process of one Distribution Company and one General Company is being initiated.
Industry: In the public sector industries, Pak-Saudi Fertilizer will go for sale within months of the announcement of Fertilizer Import Policy. Other industrial units will also be put to public sale.
For further details please visit the Privatisation Commission Web Site: www.provatsation.gov.pk

Regards,
Sardarzada