OGDC rejects ''equity-linked bond'' plan: PC told to ''mind its own business''

The Oil and Gas Development Company (OGDC) has rejected Privatisation Commission''s plan to raise for it $1.1 billion from international investors through ''equity-linked bond'' for its development projects.
OGDC''s latest communication to the Privatisation Commission explained to it that it is the ministry of Petroleum and Natural Resources (MoP&NR) to work out such a proposal to raise funds, if necessary, for a subordinate department like OGDC and not the Privatisation Commission.
OGDC''s communication, duly singed by Aftab Ahmed, Executive Director Strategic Business Planning to Privatisation Commission, a copy made available to Business Recorder, said "based on the on-going activity OGDC does not feel the requirement to raise the suggested funds of $1.1 billion through proposed equity link bond for which Privatisation Commission''s consultant gave a detailed presentation to OGDC officials". OGDC feels that the entire idea of floating equity link bond for raising funds for it seems to push this key public sector oil and gas exploration and production company in a debt trap".
The OGDC also highlighted what it said many "ifs" and "buts" in Privatisation Commission''s plan and made it clear that it does not need any financial support enfolded in the plan. It noted that OGDC is a public sector exploration and production company with a clear mandate and responsibilities. It asked Privatisation Commission to "mind its own business" instead of focusing on OGDC''s financial requirement and whenever it will have any requirement for additional funds it will definitely move the proposal to its mother ministry-MoP&NR.