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Print Print 2023-01-31

Govt offers its SOE stakes to 2 UAE firms

  • State Owned Entities include OGDCL, PPL, NBP, PIA and PNSC
Published January 31, 2023

ISLAMABAD: The government has reportedly offered its stakes in five top State-Owned Entities (SOEs) to two top companies of the United Arab Emirates (UAE), well informed sources in Finance Division told Business Recorder.

The SOEs whose shares have been offered to key UAE entities are Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), National Bank of Pakistan (NBP), Pakistan International Airlines (PIA) and Pakistan National Shipping Corporation (PNSC).

According to sources, during the recent visit of Prime Minister Shehbaz Sharif to UAE on January 12-13, 2023, it was inter alia discussed with the UAE leadership regarding more market access for Pakistani products and UAE investment in Pakistan’s public sector entities.

The sources said Prime Minister, in his engagement with heads of the economic entities in UAE including Abu Dhabi Development Holding Company (ADO) and International Holdings Company (IHC), invited their investment in National Parks Management Company Limited (NPPMCL), solar power projects, airport management of Karachi, Lahore and Islamabad and equity in five SOEs.

UAE to loan $1bn, roll over another $2bn

The sources maintained that both entities hold investment funds portfolio of $300 billion and have showed interest in investing in profitable public entities in Pakistan.

Prime Minister Shehbaz Sharif was due to discuss operationalization of $1-billon financing facility from UAE, with the UAE President Sheikh Mohamed bin Zayed Al Nahyan on Monday but his visit to Islamabad was postponed at the eleventh hour due to bad weather.

Finance Ministry has shared update on operationalization of newly announced $1 billion financing facility offered by UAE.

During the recent visit of Prime Minister Shehbaz Sharif the UAE pledged $1 billion new loans besides agreeing on rollover of existing loan of $2 billion aimed at helping Pakistan deal with the economic crisis. The amount; however, is yet to be transferred to Pakistan.

Commerce Ministry has shared an update on proposed Comprehensive Economic Partnership Agreement (CEPA) between Pakistan and UAE which will help enhance economic and trade cooperation. Pakistan is expecting bilateral trade will increase to $10.6 billion.

Aviation Division, sources said, has shared its viewpoint on permission to land A-380 at Islamabad airport and transfer of management of airports to UAE. Both issues were discussed between Pakistan and UAE during the visit of Prime Minister to Dubai.

Finance Division is now again dealing with remaining payment by M/s Etisalat held up due to controversy on legal status of properties. Finance Minister Ishaq Dar who accompanied the Prime Minister during his visit to UAE is coordinating with M/s Etisalat.

Power Division has shared update on PM’s solar initiatives, according to which the government intends to generate 10,000 MWp to replace existing expensive generation. Initially, a 600 MWp plant has been envisaged in Muzaffargarh.

Copyright Business Recorder, 2023

Comments

Comments are closed.

Muhammad Asaad Jan 31, 2023 12:02pm
Unless you will sell shares of the real white elephants like FFC, FWO,FAUJI/ASKARI Cement and AWT etc there is no use to only keep on privatizing the poor bloody civilians' institutions because at the end of the day their profit will be drained out in your free facilities.
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Rebirth Jan 31, 2023 12:42pm
Daronomics, after artificially inflating the Pakistani Dinar, has evolved into something that could be described in microeconomics as selling your land and vehicles just so you can pay your utility bills.
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Me Jan 31, 2023 01:10pm
Again, we are making short term solutions. Any inflows will be subject to gov't providing commitments for unrestricted US$ outflow via dividend repatriations and/or charging of fees by the buyers. Which would result in outlflows exceeding the inflows over time
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Muhammad Kashif Jan 31, 2023 01:43pm
The labor mafia in these government entities will surely resist to a great deal. Because the status quo in these entities benefits the labor mafia in every way. We direly need efficient government entities not heavy size INEFFICIENT entities.
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Muhammed Jan 31, 2023 02:41pm
It’s been ages that we are unable to resolve issues with Etisalat. We have now embarked on SOLAR energy. What if Solar is more expensive than Thar Coal Power?
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Haq Jan 31, 2023 09:09pm
Corrupt / rotten system, bankrupt economy, political circus... Why not privatize the govt to its people & kick the ruling elites out of Pakistan (as their kids, properties, bank accounts, businesses are already in western countries)
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salman Jan 31, 2023 11:45pm
@Muhammad Asaad, These fauji companies are money minting. Not in loss like PIA, OGDCL and others. FFC Fauji etc use 1 day income on pay and perks... rest all is profit.... That how they were able to flourish.... It started with Fauji foumdation ... then kept on acquiring and establishing.other bissiness
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Awami Feb 01, 2023 06:00am
@Muhammad Asaad, UAE will make investments and benefit will be, they will bring experienced managers and hopefully accountants. These large institutions need new management to stop losses and create profits and make these institutions healthy and wealthy over long periods.
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TimeToMovveOn Feb 01, 2023 05:59pm
These are not investments, these are collateral against loans.
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Jalal Ahmed Malik Feb 01, 2023 08:21pm
Army k department ku nahi nelam karty Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), National Bank of Pakistan (NBP), Pakistan International Airlines (PIA) and Pakistan National Shipping Corporation (PNSC) Sub kamaii kar rahy hayg agar govt apne banda direct na layy to
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TimeToMovveOn Feb 01, 2023 10:44pm
Pakistan is the only country where the military operates businesses, gets infrastructure contracts from the Pak govt (Frontier corps), and then trades in the stock exchange. The profits only goes back to the army. Any wonder why the country is in this state.
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Abdullah Feb 02, 2023 08:41am
Can we privatise the parliament to Sheikh Mohamed of Dubai.He will fix and havebhis vision implemented.We badly need it. We have tried all our politicians ans they are all of no use.
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Faisal jamal Feb 02, 2023 10:41am
It's a very good opportunity thank you so much ❤️
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