Different commercial banks are in the process of forming a consortium for lending to replace the government’s excess equity. The process is part of debt-recapitalization and will help improve the selling institutions’ financial health based on their balance sheet.
Federal Minister for Privatization Mohammedmian Soomro chaired a meeting to review the ongoing transactions in Islamabad on Friday. The Minister was briefed on the status of Heavy Electrical Complex (HEC), National Power Parks Management Company Limited (NPPMCL), Pak Reinsurance Company Limited (PRCL), DISCOs, Pakistan Steel Mills (PSM), House Building Finance Company Limited (HBFCL), and others.
It was discussed that the matter of the issuance of National Security Clearance (NSC) for transfer of K-E’s shares to Shanghai Electric (SEP), China was held up, awaiting the conclusion of the Power Purchase Agreement (PPA) between K-E and Power Division. Federal Minister Mohammedmian Soomro also asked for the urgent resolution of pending issues related to K-E, PRCL, issuance of No Objection Certificate to PSMC by Sui Southern Gas Company Limited, and receivables of NPPMCL, meeting(s) with stakeholders and line ministries be lined up on priority.
The meeting was briefed that the process for the debt-recapitalization had been initiated and banks were in the process of forming a consortium for the purpose of lending to replace the government’s excess equity.
Regarding the privatization of HBFCL through the sale of up to 100% shares along with the management control, the Federal Minister was briefed that local and international investors/financial institutions were showing interest in HBFCL. Furthermore, the VDR for the due diligence of pre-qualified parties for the revival of PSMC will be opened soon.
The Minister was also apprised of the federal cabinet’s decision regarding Guddu and Nandipur power plants. He was told that the Cabinet Committee on Energy (CCOE) would first decide the proposal of PSO about these plants and then the privatization process would be processed accordingly.
