The Privatisation Commission on Thursday handed over Habib Bank Limited (HBL) to the successful bidder, Aga Khan Fund for Economic Development (AKFED).
Privatisation Commission Secretary Ahmed Waqar and Sultan Allana inked the agreement on behalf of the PC and AKFED respectively. Finance Minister Shaukat Aziz and Privatisation Minister Dr Abdul Hafeez Shaikh also witnessed the signing ceremony.
Addressing the gathering, the finance minister termed handing over management of the HBL with 51 percent shares to AKFED as a great day for Pakistan.
He noted that successful transaction for the HBL was indicative of government''s result-oriented economic policies.
He said in today''s world, private sector was on the driving seat and the Government of Pakistan was also following the same global trend.
The finance minister added that Pakistan''s economy was now back on track and the same successful story has made unprecedented growth rate of over 5 percent for 2003-04 achievable.
He maintained that with the better micro-economic indicators, Pakistan would achieve more than 6 percent growth rate during next fiscal year.
He hoped that the AKFED would further build the HBL on strong footing so that it could continue to play a vibrant role in Pakistan''s economic growth in the future.
He added that micro-economic reforms programme has worked to the expectations of the government. After structural changes, the Security & Exchange Commission of Pakistan (SECP) and the State Bank of Pakistan were in a position to play pro-active role in regulating banking system.
He said the reforms programme was entering into second phase during which privatisation programme would be accelerated to increase private sector''s role in economic progress of the country.
Shaukat Aziz added the government would create such an environment wherein banks would grow.
Privatisation Minister Dr Abdul Hafeez Shaikh said the handing over of HBL to AKFED was a big achievement of the Privatisation Commission and expected its more active role in the future for economic development of the country.
Dr Hafeez termed the current year as good for privatisation programme and hoped for its continuity in sell-off with similar types of big transactions.
He claimed that the selling of public sector shares through the stock exchange has proved the slogan of privatisation for the people true.
The privatisation minister maintained that AKFED has more sense of commitment for the development of Pakistan and handing over of the HBL was a good omen.
The representative of Aga Khan Fund, Sultan Alana, said that AKFED creates economic capacity and opportunities in specific regions of the developing world. Its financial service institutions, some of which date back nearly 70 years, include commercial banks, micro-finance banks, insurance companies and property development and management companies in nine countries, some of which are listed on local stock exchanges.
He said the fund was also active in the fields of industry, tourism development, infrastructure, media and aviation in 19 countries across South and Central Asia and sub-Saharan Africa.
The AKFED operates as a network of affiliates with more than 90 separate project companies employing over 18,000 people and hitherto controlling assets in excess of $1.5 billion.
AKFED''s investments in Pakistan include the Serena group of hotels and lodges, New Jubilee Insurance Company and New Jubilee Life Insurance Company and the First Microfinance Bank.
AKFED was declared successful bidder by the Privatisation Commission for HBL with Rs 22.409 billion offer for acquiring 51 percent strategic stake with management rights.
The State of Qatar Supreme Council for Economic Affairs Investment remained runner-up. The third party, Central Insurance Company Limited, did not turn up for bidding.
After PC board''s nod, the Cabinet Committee on Privatisation (CCoP) gave approval to the bid.
The HBL is Pakistan''s second largest commercial bank, having a country-wide and international branch network. The HBL has full service licence covering commercial, retail banking, consumer and investment banking activities in Pakistan and most of the other countries where it operates.
It has an extensive domestic network consisting of 1,425 branches with a market share of approximately 20 percent. The bank operates a large international network of 48 branches in 25 offshore locations spread over Europe, the Middle East, Far East, South Asia, Africa and the United States.
It operates three wholly-owned subsidiaries - Habib Bank Financial Services (Pvt.) Limited (Karachi), Habib Finance International Limited (Hong Kong) and Habib Finance Australia Ltd (Sydney); two joint ventures namely Habib Nigeria Bank Ltd, (40 percent) and Himalayan Bank Ltd, (20 percent).
In addition, the bank owns 90.5 percent shares in Habib Allied International Bank Plc, a bank incorporated in the UK.
The HBL also has two representative offices in Iran and Egypt.
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