SME Bank, Pakistan Reinsurance: Sell-offs to be completed in two months, CCoP told

A meeting of the Cabinet Committee on Privatisation (CCoP) was informed Tuesday that privatisation of SME Bank Limited and Pak Reinsurance Co Ltd (up to 20 percent divestment) would be completed within two months.

The meeting presided over by Adviser to Prime Minister on Finance Dr Abdul Hafeez Shaikh was informed that the privatisation process of the SME Bank and the Pak Reinsurance was moving ahead in a relatively fast manner and the process was expected to be completed in the required timeframe.

An official said that the meeting considered two agenda items - divestment of the Oil and Gas Development Company Limited (OGDCL) shares and privatisation of Guddu Power Plant.

The meeting was informed that the Privatization Commission was trying to get strategic investment in the OGDCL with offering of 10 percent share to the strategic investor.

The adviser asked the Privatisation Commission to present a comprehensive plan for strategic investment in the OGDCL in the next meeting of the CCoP.

With regard to divestment of shares of the OGDCL, the CCoP directed that the matter required further deliberation.

The CCoP was given an update on the privatisation programme.

On the status of the revival of Pakistan Steel Mills, the CCoP gave directions to the Privatisation Commission to complete all the standard requirements in a regular but expeditious manner and keep on updating the government on any issues that may surface during the smooth running of the process.

On the proposal of the "Privatization of the Guddu Power Plant (747 MW)", Ministry of Privatisation briefed that they had received EoIs from financial advisers and parties had been short listed for issuance of request for proposals. An official said that there were some issues of land in Guddu Power Plant as its land was pledged for Islamic Sukuk Bonds.

Other issues related to the transaction were also discussed and the CCoP directed that there was a need for further discussion on the project between the NEPRA, the Power Division and the ministries of finance and privatisation.

The CCoP directed that they should come up with a joint proposal in the next meeting of the CCoP for moving ahead with the transaction so that it might be completed within the given timeframe.

The CCoP directed all the relevant stakeholders including the Ministry of Energy to come up with a presentation on the proposal in the next meeting.

Shaikh directed that all the processes related to the privatization process might be carried out in a transparent but expeditious manner so that all the targets were achieved within the given timeframe.