ISLAMABAD (October 30 2006): The Cabinet Committee on Privatisation (CCoP), scheduled to meet on Monday, will approve the Privatisation Commission's (PC) plan to float Global Depository Receipts (GDRs) of National Bank of Pakistan (NBP), Habib Limited (HBL), United Bank Limited (UBL) and Kot Addu Power Company Limited (Kapco).

The CCoP would also approve reference price for privatisation of UBL's much-delayed Second Public Offering. Earlier the government had decided to offer 10 percent shares (5+5 green-shoe option) to the general public in lots of 500 and 1000 shares, with preference to the applicants of 500 shares.

Official sources told Business Recorder that the issue of allocating a certain percentage to the employees also came under discussion at one of the previous meetings, but the PC clarified that employees would not be given any preference in this issue.

Pakistan is already well known in the international debt market, through Eurobond and Sukkuk Bond, and policy makers are confident that GDRs would attract international equity participation, help benchmarking the sale value of these shares and broaden the depth of the share market in general.

The CCoP would also take two very important decisions, which include deletion of Printing Corporation of Pakistan and Saindak Development Corporation from the privatisation program.

Sources said that some government quarters had opposed the privatisation of these two important organisation. That was why the issue was being taken up at the CCoP level, which earlier had approved the sale of these entities.

The Committee is also expected to review the privatisation program up to June 2007 because the Privatisation Commission has failed to implement the program as per schedule, especially after the controversial privatisation of Pakistan Steel Mills (PSM).

Sources said that implementation of Supreme Court judgement on PSM privatisation would be discussed at the meeting and Minister for Industries and Production Jahangir Khan Tareen would brief the Committee about his recent visit to Pakistan Steel Mills and outcome of his discussion with the management for its rehabilitation.

The Committee would also approve reference prices for Services International Hotel Lahore, Lyallpur Chemical and Fertiliser Ltd and Hazara Phosphate Fertilisers Ltd, besides approval of bidding results of sale of assets of Lesbella Textile Mills.

The CCoP would also consider carving out of CTI and TIP from PTCL and purchase of PTCL shares in TIP by GoP. The Privatisation Commission had submitted this issue before the CCoP for consideration but it was deferred for the next regular meeting.

Copyright Business Recorder, 2006