Originally a state-owned corporation, the shareholding of PTCL was reduced to 62 percent, when 26 percent of shares and control were sold to Etisalat Telecommunications while the remaining 12 percent were sold to the general public in 2006 under an intensified privatization program during the tenure of Prime Minister Shaukat Aziz. However 62 percent shares still remain under the management of government-ownership state-owned corporations of Pakistan.
Commerce Division has failed to convince the CCoP that privatisation of insurance sector, which falls under its control, will not be feasible.
Sharing the details of CCoP meeting held on February 13, 2019, the sources said, Privatisation Commission updated the meeting on implementation status of the decisions taken by the CCoP on October 31, 2018 and December 26, 2018. It was revealed that eight Public Sector Enterprises (PSEs) were approved for active privatisation program viz: (i) 1230 MW Haveli Bahadur Shah power plant ;(ii) 1233 MW Balloki Power plant;(iii) SME Bank Limited;(iv) Mari Petroleum Company Limited (divestment of remaining shares); (v) Services International Hotel ;(vi) Lakhra Coal Mines (now Lakhra coal development company); (vii) Jinnah Convention Centre, Islamabad; and (viii) First Women Bank Limited.
Implementation status of the decisions of CCoP were presented as follows: (i) 1,230 MW Haveli Bahadur Shah power plant and 1,233 MW Balloki Power Plant- Expression of Interest (EoI) was published on January 8 and 9, 2019. Last date for submission was February 8, 2019. Ten parties submitted EoIs. Requests for Proposals (RFP) inviting technical and financial proposals were issued to 6 parties, shortlisted by Evaluation Committee, having representation from Finance Division, Power Division and PC on February 11, 2019.
SME Bank - EoI published on January 11, 2019, invited interested parties to submit interest latest by January 29, 2019. Seven parties expressed interest. Request for Proposals (RFP) inviting technical and financial proposals were issued to three parties, shortlisted by the Evaluation Committee, having representation from Finance Division, the SBP and the PC.
Mari Petroleum Company Limited (divestment of remaining shares). On January 23, 2019, Petroleum Division issued transfer notice to OGDCL and Fauji Foundation, to exercise "first right of refusal" or otherwise. As per participation and shareholders agreement, JV partners were required to respond within 21 days expiring on February 13, 2019.
Services International Hotel - PC initiated hiring process of Financial Advisor (FA) on January 16, 2019, shared ToRs for engaging FA with the concerned stakeholders, ie, Commerce Division, National Insurance Co, Ltd(NICL) (96 percent) and Punjab Cooperative Board for Liquidation (PCBL) (6 per cent) , requesting to respond latest by January 24, 2019. Only PCBL responded and endorsed ToRs. As a follow up, PC on January 30, 2019 issued reminder to Commerce Division and NICL requesting to respond latest by February 1, 2019, as otherwise it will be presumed that concerned stakeholders would have no objection on ToRs and PC will proceed accordingly. Upon receipt of nil response from either, PC published EoI for appointment of FA on February 8, 2019 inviting interested parties to submit their interest latest by February 28, 2019. Both Commerce Division and NICL in their letters of February 7 and 8, 2019 reiterated their earlier concerns on the proposed privatisation of Services International Hotel with the request to again submit the matter before the CCoP.
Lakhra Coal Mines (now Lakhra Coal Development Company )- PC has constituted Lakhra Coal Development Company, who stated that two cases regarding extension of mining lease by Government of Sindh are lying pending in the Supreme Court . Next date of hearing is yet to be announced by the Supreme Court.
Jinnah Convention Centre, Islamabad - PC arranged a meeting on January 22, 2019, wherein the Chairman CDA did not participate. However, Member (Estate) attended meeting and contended that CDA has certain reservations on privatisation of the entity as per by-laws. Further feedback from CDA is still awaited.
First Women Bank Limited (FWBL)- As per sequencing proposed by the SBP and Finance Division, process of privatisation of FWBL has been initiated.
The CCoP emphasized to expedite the process of privatisation of PSEs which are on the active list of privatisation program. Privatisation Division further stated that in pursuance of CCoP decision, Utility Stores Corporation (USC), National Highways Authority (NHA), Trading Corporation of Pakistan (TCP) National Construction Limited, Pakistan State Oil (PSO), Printing Corporation of Pakistan, National Bank of Pakistan, Industrial Development Limited, SNGPL, SSGCL, PSM, Pakistan Steel Fabricating Company, Pakistan Railways and its allied entities, factories workshops etc, Civil Aviation Authority and PAICL, have been de-listed from the privatisation program.
The meeting was further informed that the land of Convention Centre is owned by CDA, therefore, federal government''s ownership of the land is essential prior to initiation of the process of privatisation of this entity. The CCoP directed Cabinet Division to take necessary action for acquisition of land of Jinnah Convention Centre at Government''s notified rates.
Commerce Division briefed the meeting on the privatisation program of insurance sector. It was stated that a detailed study is required on the privatisation of insurance sector and a report in this regard will be submitted to the CCoP soon.
The CCoP directed Commerce Division to carry out fast track evaluation of insurance and re-insurance sector with particular reference to State Life Insurance Corporation (SLIC).
The sources said, CCoP directed Commerce Division to carry out fast track evaluation of insurance and reinsurance sector with particular reference to SLIC, NICL and Pakistan Re-Insurance Company Limited (RICL) and submit a report to the CCoP for consideration. Regarding disposal of non-essential fixed assets of TCP, it was informed that non-essential fixed assets (land) have been earmarked for Naya Pakistan Housing Scheme conceived by the present government. The CCoP directed Commerce Division to submit a report on the non-essential fixed assets of TCP to the CCoP for consideration.
The meeting was apprised about Roosevelt Hotel owned by PIA stating that recently renovation of the hotel is being carried out at a cost of $ 27 million which would be completed by April 2020. It was further stated that all studies indicated that the Roosevelt site can be converted into a mixed use building as recently enacted midtown east rezoning grant provides the opportunity to double the amount that could be developed on the property, to 1.3 million Zoning Sq Ft (ZSF). The way forward submitted to the forum was: (i) to develop the Roosevelt''s sit into a mixed used building; (ii) renovated Roosevelt would continue to help generate incremental profits; (iii) process to convert Roosevelt''s site into a mixed building be initiated; and (iv) a professional study is recommended to take an informed decision.
In this regard following timeline was given: (i) approval, professional study would be accomplished in six months; (ii) based on outcome of feasibility study, potential partners would be engaged within three to six months; (iii) essential clearances from NYC Department of Building would be initiated; (iv) upon completion of approved measures, project would be launched.
The CCoP directed Aviation Division/PIA to carry out feasibility study on the mixed used building of Roosevelt Hotel by June 30, 2019 and submit a report to the CCoP.
After detailed discussion on the privatisation of PSES, the CCoP took the following decisions: (i) directed Privatisation Division to expedite the process of privatisation of PSEs which are on the active list of privatisation program and complete the process of privatisation of NPPMCL''s LNG power plants before June 30, 2019; and (ii) directed Cabinet Division to take necessary action for acquisition of land of Jinnah Convention Centre at government''s notified rates.
Commerce Division has been directed to carry out fast track evaluation of insurance and re-insurance sector with particular reference to SLIC, NICL, PRCL. Commerce Division has also been directed to submit a report on the non-essential fixed assets of TCP to the CCoP for consideration of March 31, 2019.
Petroleum Division has been directed to make a presentation to the CCoP within one month for the creation of a regulatory framework for encouraging competitive market place for gas sector utilities.
The CCoP directed Ministry of Maritime Affairs to complete feasibility study on privatisation of Pakistan National Shipping Corporation (PNSC) and submit a report for consideration of the CCoP by March 31, 2019.
A request made by the Commerce Division for the exclusion of Services International Hotel Lahore from the privatisation list was considered and not approved. It was decided to retain the hotel on the privatisation list.
The PIA has been directed to ensure completion of the feasibility study, for appraisal of various management/financial options for gaining optimal returns from Roosevelt hotel, New York by June 30, 2019 and present recommendations for consideration of the CCoP.
Ministry of Industries and Production has been directed to formulate a plan for revamping of PMDC with the objective of turning it into a highly professional body, manned with leading professionals, having capacity of providing expert service where required by the federal and provincial governments. The Ministry would make presentation to this effect to the CCoP in the next meeting.
CCoP directed Ministry of IT& Telecom Division to make a presentation on privatisation of Telephone Industry of Pakistan to the CCoP before March 31, 2019. The ministry would also make recommendations by April 2019 with regard to remaining shares of PTCL.
