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.