Privatisation of eight PSEs in CY15 likely

The government has submitted a privatisation plan for eight Public Sector Entities (PSEs) to the International Monetary Fund (IMF) which it expects to execute in 2015.
According to the plan, 100 per cent strategic assets of two power Distribution Companies (Discos) - Faisalabad Electric Supply Company (Fesco) and Islamabad Electric Supply Company (Iesco) - will be sold to the private sector by end August 2015 whereas strategic and asset sale of Lahore Electric Supply Company (Lesco) will be offered to private sector by the end of October, 2015.
The country's economic managers have also committed to selling 100 percent strategic asset of Northern Power Generation Company (NPGCL) by end August 2015. Strategic and asset sale of Saudi Arabia-based National Power Construction Company (NPCC) will be completed by March 2015.
Ten percent domestic GoP shares of Allied Bank of Pakistan (ABL) will be offloaded in the capital market by end January 2015 whereas Global Depository Receipts (GDRs) will be issued for sale of 42 percent of HBL shares (100 per cent GoP shares) in the capital market. The IMF Staff noted that while offering of Oil and Gas Development Limited (OGDCL) was postponed in the wake of weak investor demand in an environment of sharply lower oil prices, the government will sell 7.5 per cent shares of OGDCL in capital market through GDRs by the end of the current month.
The Staff further stated that the Expression of Interest (EoI) for hiring financial advisor for Pakistan Steel Mills (PSM) was advertised in October 2104 and the authorities are on track to finalise the hiring by end December 2014.
The authorities have also committed to completing the renewal of Pakistan Railways Board by end December 2014. Pakistan Railways improved revenues by around 60 per cent in FY 2013/14 and 20 per cent in the first quarter of FY 2014/15, through rationalisation of tariffs and expenditures and improved occupancy rates. The authorities have finalised a comprehensive restructuring plan for Pakistan Railways which in the short term will have a focus on improvements in freight transportation. The Financial Advisor for PIA was hired in July 2014 (structural benchmark) for potential offering to a strategic investor by end December 2014, however the new benchmark is sale by December 2015.