The Cabinet Committee on Privatisation (CCoP) is meeting here, on Saturday to set the final deadline for Pakistan State Oil (PSO) bidding, besides endorsing United Bank Limited (UBL) global depository receipts (GDRs) size and price.
Sources said the Privatisation Minister, Zahid Hamid, would brief the CCoP about outcome of PSO pre-bid meeting held on June 20. Zahid had faced tough time in pre-bid meeting from the participants, who accused privatisation commission of not providing them requisite information despite repeated calls to help them complete due diligence.
They demanded of the Privatisation Commission to hold back announcement for PSO bidding unless due diligence was completed. They were not given any clear idea except to ask to wait for the reply from Privatisation Commission. They may get the answer to their queries after CCoP meeting. UBL GDRs is being offered through London Stocks Exchange (LSE) and its book building process is going to complete on June 23.
CCoP will be informed about the offer''s outcome and it would be followed for seeking its endorsement for GDRs'' size and price. The government is hopeful of getting extraordinary response for UBL GDRs.
In a recently held press briefing, Zahid Hamid had pointed out that UBL GDRs would be the biggest offer in all respects in Pakistan''s history. However, he refrained himself from listing the factors on which he built-up his hopes to calling UBL GDRs a historic one.
The government is in dire need to complete UBL GDRs before the closing of the current fiscal year. The money raised from it will help the government reduce budgetary gap, besides plugging to some extent current account deficit.
The government is heavily dependent on UBL GDRs to get additional financial resources to make-up current account deficit as exports, its other key component, is going to remain much below the target set for the current fiscal year.
CCoP will also give a go-ahead for Habib Bank Limited initial public offering (IPO). Other agenda items of the meeting would be resetting sell-off process for Hazara Fertiliser Company Limited. The Privatisation Commission had offered Hazara Fertiliser for bidding last week but due to absence of one of two parties cancelled the bidding and announced to call fresh expression of interest (EoIs).
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