Privatisation efforts began in earnest after the creation of Privatisation Commission on January 22, 1991. Although the PC mandate initially restricted to industrial transactions, by 1993 it had expanded to also include Power, Oil & Gas, Transport (aviation, railways, ports and shipping), Telecommunications and Banking and Insurance. During January 1991 to September, 2015 the Commission completed 172 transactions for Rs 648.954 billion.

To date, Government of Pakistan had completed or approved 172 transactions at gross sale price of Rs 648.954 billion. The sources of the proceeds have been shown in the figure 1.

 

 

About 66% of the proceeds received were transferred to the Federal Government, 28% was returned to legal entities whose shares were sold, 4% was used for restructuring expenses associated largely with golden handshakes and rehabilitation, and 2% was used for PC’s privatisation-related expenditures (Figure 2).

While almost all the transactions were settled in local currency, about 66.3% of the proceeds have been received in foreign exchange from transactions pertaining to Kot Addu Power Plant (KAPCO), Oil & Gas Concessions, Habib Credit & Exchange Bank, United Bank Limited, Habib Bank Limited, KESC, PTCL, OGDCL and UBL. The table 2 provides the number of transactions privatised and sale proceeds received against these transactions.

Table 2: Number of privatised transactions

SECTOR

Sale proceeds 1991 to
Sept. 2015

No.

Amount (Rs. in million)

Banking 7 41,023
Capital Market Transaction 26 303,494
Energy 15 54,255.3
Telecom 4 187,024
Automobile 7 1,102
Cement 17 16,177
Chemical 16 1,643
Engineering 7 182
Fertilizers 7 40,281
Ghee Mills 24 842
Rice 8 236
Roti Plants 15 91
Textile 4 370
Newspapers 5 270
Tourism 4 1,805
Others 6 159

Total

172

648, 954