NA body on Privatization meets

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ISLAMABAD, Nov 29 (APP): National Assembly Standing Committee on Privatization here on Friday informed that in pursuant to the directions of Cabinet Committee on Privatization the Board approved divestment of up to 7% shares of OGDCL to the foreign and domestic institutional investors and general public etc at Pakistan Stock Exchange.

The committee which met here at Parliament house with MNA Syed Mustafa Mahmud in chair further informed that Privatization Commission invited the Interest for appointment of Financial Advisory Consortium and issued request for proposal to three Interest Parties. Due date for submission of technical and financial Proposal is 9th December, 2019.

The committee informed that a strategic partner is required to discover the true profit of its privatization. Moreover, OGDCL apprised the Committee that OGDCL is the market leader in almost all aspects of up-stream sector including acreage, seismic, reserves and production.

The committee was informed that OGDCL is a debt free company, contributing Rs.160 billion to national exchequer. Government of Pakistan holds 74.97% interest while 10.05% with Benazir Employees Stock Option Scheme. OGDCL is producing 47% of Oil and 29% of Gas out of the total country’s production during 2019-20. Its net sale is Rs.261.481 billion & profit after tax is Rs.1178.3 billion during FY 2018-19. During the fiscal year 2018-19 about 16 wells have been drilled including 9 exploratory and 7 development wells.

At the outset the representative of Pakistan Petroleum Limited (PPL) apprised the Committee that the Privatization Commission Board approved divestment up to 10% share of PPL held by Government of Pakistan to the institutional investors through block sale.

The committee was briefed that PPL is the pioneer in oil and gas field in the country. Government of Pakistan holds 67.5% while 7.4% shares are held by Benazir Employees Stock Option Scheme and their remaining 25% shares have been offered for free float. The Committee deferred the remaining agenda regarding Guddu and Nandi Pur Power Plants and decided that a separate meeting would be convened to get the full spectrum on the detailed discussion.

The meeting was attended by Zulfiqar Ali Khan Dullah, Khurram Shahzad, Shandana Gulzar Khan, Syma Nadeem, Jamshed Thomas, Sikandar Ali Rahoupoto, Faheem Khan and Muhammad Pervaiz Malik MNA’s, Parliamentary Secretary for M/o Privatization, beside senior officers from the Ministry of Privatization and M/o Energy.

Source: VNS Islamabad