The Cabinet, which met with Prime Minister Shaukat Aziz in the chair here, was told by the Privatisation Commission (PC) that it had held threadbare negotiations with HAC, including Aljomoaih Holding Company of UAE, and CCoP had recommended to the government that the offer of reconstituted consortium may be accepted.
According to sources, the Cabinet was informed that a three-member committee of PC had held meetings with Hassan Associates and other members of the consortium, besides the new member Aljomoaih, which agreed to meet the highest bid of Rs 1.65 per share.
Two companies of original consortium, AKD Securities and Safe Deposit Company, declined to rejoin the consortium but gave no objection to the reconstituted consortium. However, Premier Mercantile Services agreed to join the new consortium with 0.5 percent equity participation.
Sources said that while approving the offer, the government decided that in case full payment for finalising the deal for acquisition of shares of KESC was not made within the stipulated time of 14 days of the issuance of LoA, the extended earnest money of $100 million would stand forfeited.
The Prime Minister appreciated the efforts of Privatisation Commission in bringing about the success on the transaction. The successful completion of this sale would send very strong signals to the investor community both at home and abroad, he added.
The cabinet approved the federalisation of Hoshao-Panjgur-Nag-Baseema Sorab Road, which will provide an efficient means of transportation up to Gwadar Port. The Gwadar Port has immense commercial potential, which will create a lot of economic activity in the country in general and in the Province of Balochistan in particular.
The Cabinet approved the signing of an agreement between Pakistan and India for commencement of Nankana-Amritsar Bus Service.
The Minister for Privatisation and Investment briefed the Cabinet about his meetings with the UAE leadership on PTCL privatisation. As a follow-up to the meeting he would meet his counterpart in the UAE immediately after Eid and try to achieve closure of PTCL transaction, he said.
The Cabinet also reviewed the relief operation and expressed satisfaction over the pace of distribution of tents, blankets and other material. The Cabinet was informed that about 265,000 tents and 3.3 million blankets have already been distributed and the government would ensure availability of more blankets and tents to everyone during this month as the government has firmed up the arrangements for assured supply from both domestic and foreign sources.
The Cabinet was informed that so far the international community has pledged $2 billion for relief and reconstruction, and more than Rs 6 billion had been received in the President's Relief Fund 2005 from domestic mobilisation.
The Cabinet expressed its firm resolve that the government would ensure that no one would face starvation in the earthquake stricken areas as the civil, military and international agencies have all been geared up to meet the situation.
The Cabinet appreciated the opening of relief camps at five points along the Line of Control where relief and medical assistance will be available to the affectees. These will also facilitate the meeting of the divided families.
The Foreign Secretary briefed the Cabinet regarding the procedure agreed upon by both governments aimed at facilitating the crossing of the earthquake victims, especially members of the divided families.
In order to express solidarity with the earthquake affectees, the Cabinet reiterated to observe Eid-ul-Fitr with solemnity and that there would be no functions at official levels. The Cabinet decided that its members would spend Eid with the victims in the earthquake stricken areas and share the grief with the people who have been subject to devastation of unprecedented scale.