Plan to sell stakes in 3 companies by June-end, says Qamar

ISLAMABAD (PPI) - Federal Minister for Privatisation, Syed Naveed Qamar has said that Pakistan plans to sell stakes in at least three companies by the end of June, reviving an asset sale program stymied by political instability and a slowing economy.
This will be the start of our program with a new concept of modernizing companies with efficient management rather than a fund-raising target, Privatisation Minister Naveed Qamar said in an interview with foreign media.
Ministry officials will meet potential buyers for National Power Construction Co. (NPCC) on March 28 to set a bidding date as early as next month, he said. Stakes in Jamshoro Power Co. (JPC) and Heavy Electrical Complex (HEC) may be sold by June 30, Qamar said.
Funds raised from asset sales fell by a quarter last year as political wrangling and terrorist attacks in the nation biggest cities deterred overseas investors. Pakistan yesterday said it would seek $10 billion in funds over the next three years for development projects after securing a $7.6 billion bailout from the International Monetary Fund to avert default.
Since the start of this fiscal year on July 1, Qamar has completed only one transaction, raising 1.34 billion rupees ($16 million) by selling a stake in Hazara Phosphate Fertilizers Ltd., a urea maker. That compares with the previous govt of former President Pervez Musharraf raising 25.5 billion rupees in a year through stakes in HBL and UBL.
Last month, Naveed Qamar, announced changes to the asset sale policy, setting aside 12 percent of shares to workers in state- controlled companies such as Pakistan Railways and the Pakistan Post Office, the nation postal service.
The benchmark is 26 percent for the stake to be sold in almost every company, apart from offering shares to employees, he said. The new concept is to sell a minority stake and transfer the management, he said.