Govt allows hiring of transaction adviser for discos privatisation

ISLAMABAD: The government on Thursday allowed appointment of a transaction adviser to award management contracts to private sector for operating power distribution companies.

The decision was taken during a meeting of the Cabinet Committee on Privatization presided over by Minister for Finance and Revenue Hafeez Shaikh.

The privatisation division presented various proposals regarding award of management contracts for smooth running of power distribution companies (discos). The management contracts aims to improve the service delivery and serve the larger interest of electricity consumers.

The privatisation division requested for a permission to hire a transaction adviser for completing the aforesaid tasks.

After detailed discussion, the committee directed officials to speed up the process of completion of prior actions pertaining to award of management contracts for discos and present a roadmap with firmed-up proposals within a week, after seeking requisite approval from the Privatization Commission Board.

The committee allowed hiring of a transaction adviser as permissible under the rules.

Among the loss making SOEs proposed for privatization, the major entities are eight discos (Hesco, Iesco, Pesco, Sepco, Mepco, Lesco, Fesco and Qesco), one power generation company (Jamshoro Power Company) along with Pakistan Textile City Ltd., State Engineering Corporation and Telephone Industries of Pakistan.

Privatisation division presented a summary regarding approval of a Reserve price for the privatization of the Services International Hotel, Lahore.

The additional secretary briefed the committee that all codal formalities were met during the valuation process. After due deliberation, the committee approved the reserve price for the sale of services international hotel, as recommended by the Privatization Commission.

Shaikh said stressed the need to carry forward the process of Privatization on fast track basis. The time is of essence in undertaking a well-structured privatisation activity to bring in competitive efficiency, improve service delivery and enhance customer satisfaction. Privatisation will diversify sources of income for the government, generate employment opportunities and contribute towards overall economic growth and development, he added.

The finance minister urged the officials to observe the timelines and carry forward the whole process expeditiously, he said.

The privatisation division also submitted a compliance report on the implementation status of public sector enterprises in real estate, industries, banking and finance, energy and other sectors which are on active privatisation list.

The committee reiterated the firm commitment of the government in spearheading the privatisation process with transparency and fairness in consultation with stakeholders.