Mr. Muneer Ferozie, of International Finance Corporation (IFC) along
with his team called on Minister / Chairman Privatisation Commission, Mr.
Daniyal Aziz here in Islamabad today. The Minister discussed revival the
previously suspended Financial Advisory Services Agreements.
Privatisation Commission commenced discussions with IFC to restart the
privatisation of State Owned Entities, which are bleeding the national
exchequer. IFC had been previously engaged by Privatisation Commission for
financial advisory services, The IFC is the private arm of the World Bank. It
is an international financial institution that offers private investment and
management services to encourage private sector development / participation
globally. IFC is a leading international advisory organization dealing with
Public Private Partnership, Privatisation and Infrastructure development having
expertise on Power Sector, Aviation and Transport sectors etc.
Threadbare discussions took place and cross cutting themes were shared.
Future outlook of various sectors was explored including 10,000 MW new
generation has been added in the country and its linkage to improve the power
sector sustainability through reduction of losses, improve recovery /
collection and improvement in governance by private sector participation was
considered. Various modes of privatisation suitable to various sectors and
entities were deliberated for optimum results in terms of customer service
delivery. Details of marketing, sequencing of transactions, preparation of
bidding documents, enhancing investors' appetite and findings of international
best practices were discussed at length.
The option of strategic sale along with transfer of management control
of State Owned Entities was considered. Pakistan needs to reduce poverty and
pay off large debts which is provided in the Privatisation codes. Privatisation
also has the potential to attract large foreign exchange through international
investments. This approach is considered as most optimal instead of divestment
of marginal shareholding through IPOs these do not enhance management
capacity. Whereas Privatisation has the maximum
chances of turnaround of sick units and investments are substantially higher.
Secretary Privatisation Commission, Mr. Irfan Ali was also present in
the meeting.
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