Privatisation of government entities has been almost non-existent during the last five years as the process needs political will which the incumbent government is lacking, sources added on condition of anonymity. The government may not be able to generate Rs 74.4 billion estimated in the budget on account of PTCL in 2012-2013, as Etisalat has not yet cleared its US $800 million dues due to non transference of properties, sources added.
They maintained that the US $500 million estimated in the budget on account of exchangeable bonds of the Oil and Gas Development Company Limited (OGDCL) might also not be possible in the current fiscal year due to the current situation in the international market.
According to documents available with Business Recorder , Privatisation Commission Board in its meeting held on October 05, 2012 approved initiating the privatisation process of strategic sale for minimum 51 percent divestment of government shares along with management control in the Islamabad Electric Supply Company (IESCO) and allowed the hiring of a Financial Advisor for the purpose.
Documents further revealed that the total assets of IESCO in the year ended June 30, 2012 had increased to Rs 89.3 billion as compared to Rs 79.3 billion in the previous year. IESCO posted a net loss after tax of Rs 13.47 billion for FY 2011-12, whereas the profit of the previous year was Rs 667 million. Council of Common Interest in its meeting held on April 28, 2011 approved the privatisation of three Generation Companies (GENCOs) and nine Distribution Companies (DISCOs). FESCO is one of the nine Distribution Companies (DISCOs), documents maintained.
Fesco's total assets at the year ended June 30, 2012 increased to Rs 87.52 billion as compared to Rs 72.50 billion for the previous year while it posted a net loss after tax of Rs 15.15 billion for FY 2011-12, whereas, the loss after taxation of the previous year was Rs 50.39 million, documents further disclosed.