CCOP CONSIDERS DIVESTMENT OF PSM, OTHER ENTITIES

Islamabad July 14, 2016
PR No. 69
Finance Minister, Senator Mohammad Ishaq Dar here on Thursday chaired a meeting of the Cabinet Committee on Privatization (CCOP) which considered proposals regarding divestment of Pakistan Steel Mills, PIA, KAPCO and Power Sector Entities.

CCOP held detailed deliberations on financial and administrative situation prevailing in the Pakistan Steel Mills (PSM). It was observed that despite massive efforts, there had been no serious engagement by the Sindh government on the offer made by the Federal Government to acquire the PSM. The CCOP therefore allowed Privatization Commission to go ahead with the plan for divestment of PSM following due process.

The Committee had discussion on the proposal regarding restructuring of Pakistan International Airlines Corporation Limited (PIACL) and desired that its decision of 7th May 2016 may be fully implemented. The decision called for completing the corporatization process of PIACL and finalizing the matter regarding separation of core and non-core business.

The Committee allowed Privatization Commission to initiate process for listing of shares of qualified Discos on the stock exchange through IPO, starting with FESCO and IESCO. It was decided that Government would retain the control of companies as well as management.

CCOP also approved divestment of Government’s residual share holding in Kot Addu Power Company Ltd (KAPCO). Accordingly all of GoP’s stake in KAPCO held via WAPDA will be divested which comes to 40.25% of issued share capital, amounting to 354,311,133 shares. Further, the transaction will be executed as a strategic sale to the qualified bidder.

Finance Minister on this occasion directed that principle of transparency must be ensured in the divestment process.